AOUK Pension Scheme completes £11m buy-in

The American Optical UK (AOUK) Pension Scheme has completed an £11m full scheme buy-in, in a deal that has been highlighted as evidence that even the smallest of schemes can receive strong insurer engagement.

The trustee was able to transact within three months of deciding to go to market and at competitive pricing and terms, with preparatory work carried out by the sole trustee and sponsoring employer, Carl Zeiss Vision UK Ltd, highlighted as "key" to this.

The buy-in was completed under LCP’s streamlined buy-in and buyout service, bringing the total liabilities secured through this service to over £2.7bn.

LCP also highlighted the deal as evidence that even the smallest of schemes can receive strong insurer engagement through its streamlined service, despite record activity levels in the buy-in and buyout market.

Indeed, LCP revealed that, amid the increase in demand, insurers are increasingly requiring sub-£100m transactions to use a streamlined transaction process.

Commenting on the deal, AOUK Pension Scheme trustee and Vidett client director, Mark Fletcher, stated: “I am very pleased to conclude this buy-in with Just Group for the AOUK scheme and its members.

"Through detailed preparation and working in partnership with the sponsor, we were able to move nimbly and take advantage of the favourable market conditions.”

Carl Zeiss Vision UK&I finance and legal director, Matthew Guilliatt, added: “I am thrilled that we have collectively completed the buy-in, in such a smooth and efficient manner. 

"The streamlined approach from LCP, along with the close collaboration with the trustee and wider stakeholders, has enabled a seamless process to be concluded swiftly and a great outcome for the scheme.”

Just Group DB business development manager, Kishan Radia, also stressed that there is a "vibrant consolidation market for schemes of all sizes", highlighting the deal as a "great team effort with high levels of collaboration shown by all parties involved".

LCP partner, Catherine Hopper, added: “We are pleased to have been able to deliver such a favourable outcome and are looking forward to supporting many other smaller schemes – we are working on double the number of streamlined transactions than we were this time last year.”

    Share Story:

Recent Stories


Closing the gender pension gap
Laura Blows discusses the gender pension gap with Scottish Widows head of workplace strategic relationships, Jill Henderson, in our latest Pensions Age video interview

Endgames and LDI: Lessons to be learnt
At the PLSA Annual Conference, Laura Blows spoke to State Street Global Advisors EMEA head of LDI, Jeremy Rideau, about DB endgames and LDI in the wake of the gilts crisis of two years ago

Keeping on track
In the latest Pensions Age podcast, Sophie Smith talks to Pensions Dashboards Programme (PDP) principal, Chris Curry, about the latest pensions dashboards developments, and the work still needed to stay on track
Building investments in a DC world
In the latest Pensions Age podcast, Sophie Smith talks to USS Investment Management’s head of investment product management, Naomi Clark, about the USS’ DC investments and its journey into private markets

Advertisement