Pension scheme completes £484m buy-in

Pension scheme

Just Group reinsured approximately 50 per cent of the liabilities in the scheme with an external reinsurance partner

The Barloworld UK Pension Scheme has completed a £484m full scheme buy-in with Just Group, insuring the benefits of around 3,000 pensioners and 1,800 deferred members.

Just Group reinsured approximately 50 per cent of the liabilities in the scheme with an external reinsurance partner.

This transaction is Just Group’s largest defined benefit (DB) transaction to date, with the deal described as a “key step” in the scheme’s journey plan to having buy-in investments that cover all scheme benefits.

The lead transaction adviser was LCP, while Isio acted as scheme actuary and investment adviser to the trustee.

Legal advice was provided to the trustee by Pension Partners and MacFarlanes, while CMS provided legal advice to Just Group.

The trustee was chaired by Independent Trustee Services.

Our target has been to remove UK pension scheme risk by fully insuring all members and this transaction comes at the right time with favourable terms, commented Barloworld UK CEO, Quinton McGeer.

We were prepared to make a significant financial contribution to enable this deal to happen, subject to obtaining attractive pricing and terms, in order to secure a full buy-in that meets both our corporate objectives but also protects the benefits of the scheme members, he said.

Independent Trustee Services chair of trustee, Mark Evans, added: We are delighted to have concluded this transaction so smoothly, in spite of some significant challenges along the way. This was thanks to all stakeholders’ objectives being clearly understood from the outset and a truly collaborative approach throughout.

Just Group managing director, DB solutions, Pretty Sagoo, said the insurer was ‘very pleased’ to be selected by the trustee to secure their members’ benefits.

This is a very strong endorsement by the trustee of our service and the member onboarding experience we will provide, she continued.

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