The Finning Pension Scheme, which is sponsored by Finning (UK) Ltd, a Caterpillar machinery dealership, has concluded a £250m (€) bulk purchase annuity (BPA) transaction with Standard Life.
This full scheme buy-in transaction, which completed in December 2024, covers all 2,170 members of the scheme, it was announced.
The trustees and sponsor collaborated closely with Standard Life to meet the scheme’s de‑risking objectives to secure this buy-in following a competitive auction process.
Aon acted as the lead transaction adviser to the trustee, with investment advice from Hymans Robertson and legal advice from Gowling WLG.
Ciaran McMenamin, chair of trustees at the scheme, said: “We are pleased to have completed this transaction, which is a great outcome for our members. Standard Life was selected following a highly competitive process involving seven insurers.”
He said the process was “expertly led and managed” by Aon, adding that Standard Life was selected by taking into account a broad range of factors, including the firm’s “willingness and ability to work closely with the scheme’s administration team and minimise impacts on member service and experience”.
Alex Oakley, BPA transaction manager at Standard Life, said that for this transaction, Standard Life’s ability to meet the specific needs of the scheme and work with its existing processes ensured a smooth and efficient de-risking journey and a successful outcome for all involved.
“Insurers continue to play a crucial role in this highly active [defined benefit] DB de-risking market, and we remain focused on collaborating closely with schemes and trustees to deliver tailored solutions that align with their long-term objectives,” Oakley said.
James Staveley-Wadham, principal risk settlement consultant at Aon, commented: “Aon has advised the scheme for many years, and it is extremely satisfying to have guided the trustees through the preparation, broking and execution process to achieve a transaction that meets a wide range of objectives. A key outcome for the trustee was ensuring that a strong member experience remained post buy-in. This is an area in which we are seeing ever-growing demand from schemes when considering insurance.”
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