Retailer Spar UK has completed an £11 million buy-in transaction for its UK pension fund.
The transaction was carried out by Just Group in order to provide a better outcome for members through greater security of their benefits. Before approaching the market, the trustees worked to equalise guaranteed minimum pensions within the fund.
PricewaterhouseCoopers (PWC) acted as the specialist risk transfer adviser, with legal advice provided by Burges Salmon, and scheme actuarial and administration services by Hughes Price Walker.
Lee Johnson, strategy and operations director at Spar UK, said: “This is a fantastic outcome for our members, who now have insurance-backed security of their pensions. We are delighted with the support we have received from all of our advisers to ensure the security of our members’ benefits is at the heart of what we do.”
Karein Davie, professional independent trustee at Independent Governance Group, added: “Just was able to demonstrate the capability and flexibility in meeting our key objectives from early on in the process. I’d like to thank all of our advisers for their support. Working with PWC, to use its expertise and relationships to navigate a busy market allowed us to execute what is a really positive result for all parties. I am also grateful for the organisation’s support and close collaboration throughout the journey, which was essential in helping us to reach this point.”
Sam Whalley, lead risk transfer adviser at PWC, said: “We worked closely with all parties to ensure a smooth quotation process, which resulted in a successful buy-in transaction with Just. This is especially notable given the unprecedented demand in the pension risk transfer market. We were able to agree a bespoke process that increased certainty in relation to the transaction price and timing, which will pave the way to an efficient move to potential buyout in the near future.”