Unnamed pension scheme completes £260m buy-in with Just Group

The pension scheme for an unnamed global overseas bank has completed a £260m full buy-in with Just Group, securing the benefits for 211 deferred and 77 pensioner scheme members.

K3 Advisory worked in partnership with Cartwright to provide scheme actuarial and investment advice, whilst legal advice was provided to the trustee by Burges Salmon, and investment advice was provided by Save & Invest.

Just Group director of business development, Rob Mechem, highlighted the transaction as “something of a watershed transaction for Just”, as it looks to establish itself as a leading insurer for small- and medium-sized pensioner buy-ins, as well as for deferred heavy full buy-ins.

“We worked with K3 and Cartwright to ensure we matched all of the liabilities that the trustees had,” he continued. “As we have come to expect K3 and Cartwright combined for a slick process ensuring our engagement and a terrific result for both the trustees and sponsor.”

K3 Advisory managing director, Adam Davis, also highlighted the deal as evidence that K3’s “tried and tested” approach to transacting for smaller schemes, works very well for mid and large schemes too, with the transaction representing the firms largest buy-in to date.

He stated: “Our approach and tenacity meant that the scheme received bids from six of the eight active insurers despite the heavy weighting to deferred members.

"And the competition meant the pricing was competitive too, with the result being no contribution was needed by the sponsoring employer. 288 secured members at no cost to the scheme or company is a great result.”

Robert Sweet, Scheme Actuary at Cartwright, added: “We have worked with the company and trustees for 20 years. The most recent scheme valuation showed that the scheme was in a healthy funding position, so we proactively proposed that we test the insurance market.

“After securing six competitive quotes and an insurer that was willing to lock in their pricing, it is very satisfying to help the trustees finally realise their long-term objectives for their scheme, and ultimately their members, much quicker than they had dared hope.

“We are really pleased that our compelling joint approach with K3 has yet again enabled another scheme to be fully insured many years ahead of their expectations.”

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