Riverstone Management pension scheme agrees £95m buy-in

The trustee of the Riverstone Management Pension and Life Assurance Plan has completed a £95m full buy-in with Standard Life, securing the benefits of all 388 members in the scheme.

As part of the deal, the trustees were also able to insure an enhancement to members’ benefits to remove the cap on price inflation linked pension increases in payment, meaning members with price inflation increases get full protection against future high inflation.

LCP acted as lead transaction adviser to the trustee, while Burges Salmon provided legal advice.

The is the second scheme sponsored by Brit Insurance that has completed a full buy-in, following the full buy-in of its other scheme in 2022.

Commenting on the deal, chair of the trustees, Nick Bentley, said: “Based on the pricing achieved and the full support of the sponsor we were delighted to be able to secure our members with Standard Life, and in addition provide enhanced benefits so that our members with inflation linked benefits are fully protected against the potential of high inflation in the future.”

LCP partner, David Stewart, also emphasised the importance of preparation in providing the trustee with high certainty around the benefits and quality of data in the scheme, arguing that this put them in a “prime position in a busy market driving a competitive process”.

“The attractive pricing meant the trustees could afford to enhance member benefits providing full inflation-proofing,” he continued.

“Recent high inflation levels have shown how pensions can be quickly eroded in real terms so this enhancement provides a real long-term benefit for the members.”

This was echoed by Burges Salmon partner, Richard Pettit, who said that the preparatory work carried out by the trustees to review the governing documentation and obtain certainty on the benefits due under the plan was “vital” in allowing the transaction to proceed so quickly and smoothly – ensuring a positive outcome for members.”

Adding to this, Standard Life senior business development manager, Rhian Littlewood, said: “Ensuring the security of members’ benefits is at the very heart of DB de-risking activity and we are delighted to have provided this by locking in the benefits for all 388 members of the plan.

“This is a prime example of how open communication and a fully collaborative approach between all parties supports effective decision-making and can improve member outcomes, in this instance, by providing full inflation proofing for members – an invaluable benefit in the current climate.”

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