Comet Pension Scheme, the pension fund for sponsoring company Fnac Darty – a retailer of consumer electronics and domestic appliances – has completed a £330m (€378m) full-scheme buy-in transaction with Canada Life, securing the future benefits for 4,500 scheme members.
LCP was appointed by the sponsoring company as lead risk transfer adviser and broker on the deal, working closely with XPS as risk transfer adviser to the trustee.
The parties collaborated with Canada Life to deliver a buy-in solution suiting the needs of the scheme and its sponsor.
XPS is the scheme’s actuary and administrator. Eversheds Sutherland provided legal advice to the trustee while Macfarlanes provided legal advice to Fnac Darty. Canada Life’s legal adviser was CMS.
Ian Edwards, chair of the scheme trustees, said: “The trustee is pleased to have concluded a collaborative process with our sponsor and Fnac Darty, that has enabled us to take advantage of our improved funding level to complete this successful buy-in transaction with Canada Life, which will provide long-term security for our members’ benefits.”
Jean-Brieuc Le-Tinier, chief financial officer of Fnac Darty, added: “This agreement with the UK pension trustee represents a significant step in our long-term strategy. Working closely with the trustee, we have covered this risk without impacting the group’s cash position and secured members’ benefits with a leading insurer.”
Shreyas Sridhar, managing director, bulk purchase annuities at Canada Life UK, said: “This transaction is a great demonstration of what can be achieved through collaboration, and how focused planning by all the parties involved can deliver positive long-term benefits for scheme members.”
Read the digital edition of IPE’s latest magazine
No comments yet