Unnamed pension scheme completes £345m buy-in with Just Group

An unnamed pension scheme sponsored by a global distribution company has completed a £345m full scheme buy-in with the Just Group, marking the largest individual transaction for the insurer to date.

The transaction also included the most deferred pensioner liabilities taken on by the group in a single transaction, securing retirement benefits for just under 1,000 deferred members and nearly 900 pensioner members.

The trustee received advice on the transaction from Aon and DLA piper, whilst Just received legal advice from CMS.

The transaction was completed at the end of 2021, during a period of "intense market activity", although the scheme was able to achieve a competitive tender process thanks to its "well-prepared membership data and benefit specification".

This data preparation is also expected to help expedite the true-up and subsequent transition from buy-in to buyout, which the scheme plans to do in future.

Indeed, Aon associate partner, Karen Gainsford, highlighted the transaction as demonstration of the benefits of trustees "being engaged and hands-on in their de-risking strategies".

"We worked closely with the trustee to ensure that the scheme was in the best position to move forward to this very successful conclusion," she said.

Adding to this, Just Group group chief executive officer, David Richardson, said: “We are very pleased to have provided support to the trustee and secured the member benefits of this scheme.

"It’s the highest single value transaction our defined benefit business has completed, and has contributed to Just achieving record 2021 defined benefit de-risking sales of £1.9bn, up 28 per cent on 2020.”

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