A UK innovation and technology pension scheme has completed a £400m full scheme buy-in transaction with Just Group.
The transaction covers around 2,500 pensioners and dependants and 1,500 deferred members of the scheme, entirely removing the investment and longevity risk from the unnamed sponsor.
Mercer acted as lead risk-transfer adviser as well as insurer financial strength adviser, scheme actuary and investment adviser.
The trustees’ legal adviser was Eversheds Sutherland, with Clifford Chance advising Just Group.
The sponsor’s legal adviser was CMS and Isio provided corporate actuarial, investment and insurance advice.
Steve Southern, professional trustee at Vidett and independent chair of trustees for the scheme, said the transaction is a culmination of 10 years of collaborative work between the trustees, advisers and sponsor.
He said: “We are very pleased that Just was able to continue this collaborative theme and work to secure the right premium.”
Geraint Jones, business development manager at Just Group, said that there is a “vibrant” bulk annuity market for schemes of all sizes and Just Group is actively helping small, medium and large schemes.
Suthan Rajagopalan, partner and lead pension risk transfer adviser at Mercer, added: “Working with the Just team we were also able to find solutions to provide our client with certainty over pricing affordability, in specie asset transitions and managing short-term liquidity of less liquid assets via a deferred premium.”
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