The GKN Group Pension Scheme (No. 4) has completed a defined benefit (DB) de-risking transaction – a £513m (€578m) full scheme buy-in – with Just Group, insuring the benefits of some 2,262 pensioners and 1,963 deferred members.

The transaction covers all of the fund’s deferred and pensioner members, removing the investment and longevity risk of the scheme from the business, it was announced. GKN Aerospace, the sponsor of the scheme, is owned by Melrose Industries.

The lead transaction adviser was EY, with Mercer acting as risk transfer advisor to the trustees. Cardano worked closely with the scheme trustees on the asset transition.

The trustees legal adviser was Pinsent Mason, while Clifford Chance was the legal adviser to Melrose. Just Group maintained internal legal counsel. The trustees were chaired by independent trustee Andrew McKinnon.

He said: “The trustee is pleased to have reached such a great outcome for our scheme members which was achieved through a collaborative partnership with the company (who also provided the extra funding needed to secure the transaction) and with the extensive support of ours and the company’s advisers.”

Peter Jennings, head of DB sales at Just Group, added: “This was a textbook example of how stakeholders should collaborate to deliver a very efficient and well executed transaction to achieve excellent outcomes for the trustees and their members.”

PMI hires Scottish Widows as master trust insight partner

The Pensions Management Institute (PMI) has appointed Scottish Widows as its insight partner to share its expertise on master trusts within the industry with PMI members.

PMI’s Insight Partnerships are developed with organisations considered to be experts in the industry in a range of areas to drive innovation. This partnership will involve Scottish Widows hosting webinars, interviews, and panel discussions for PMI members on key master trust topics within the industry

PMI’s Insight Partnerships support innovation on current, pertinent issues and add value through the delivery of specialist knowledge, it said.

Master trusts are increasingly viewed as an efficient way to outsource scheme management while retaining strong trust-based governance. As more employers begin to view master trusts as a potential solution, the partnership between the PMI and Scottish Widows aims to collaborate to bring the latest insight on master trusts to PMI members, the institute added.

Gareth Tancred, PMI’s chief executive officer, said: “Master trusts are becoming more commonplace in the pensions industry, as it continues to modernise. The partnership with Scottish Widows will provide our members with unparalleled understanding from leading experts in master trusts. Scottish Widows is an ideal choice to be our insight partner on this topic.”

Sharon Bellingham, master trust lead at Scottish Widows, added: “The modern master trust is no longer a simple [defined contribution] DC vehicle – it can provide flexible and sophisticated solutions for individuals, employers, trustees and is at the vanguard of a busy legal, regulatory, and mandatory change agenda, all within a supervisory regime that demands high standards of governance and risk management.”

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