The Comet Pension Scheme has completed a £330m full-scheme buy-in with Canada Life UK, covering the retirement benefits of 4,500 pension scheme members.

The scheme was first formed in 2004 following the demerger of Comet from Kingfisher, and subsequently became part of the multinational retail company Fnac Darty in 2016.

LCP was appointed by the sponsoring company, Fnac Darty, as lead risk transfer adviser and broker on the deal, also working closely with XPS as risk transfer adviser to the trustee.

XPS also acted as the scheme’s actuary and administrator, while Eversheds Sutherland provided legal advice to the trustee, Macfarlanes provided legal advice to Fnac Darty, and Canada Life received legal advice from CMS.

Fnac Darty chief financial officer, Jean-Brieuc Le-Tinier, said the deal marks a "significant step" in the group's long-term strategy, covering pension risk without impacting the group's cash position and securing members’ benefits with a leading insurer.

"We are pleased to have completed this transaction in favourable market conditions," Le-Tinier said.

Canada Life UK bulk purchase annuities managing director, Shreyas Sridhar, also described the deal as a "great demonstration of what can be achieved through collaboration, and how focused planning by all the parties involved can deliver positive long-term benefits for scheme members".

“I am delighted that Canada Life UK has been selected by the Comet Pension Scheme Trustees and Fnac Darty as the scheme’s pensions derisking partner, and I thank them for the full confidence they have in the strength and expertise of Canada Life UK and our global parent Great West-Lifeco to deliver a gold standard customer experience for their members," Sridhar added.

The importance of collaboration was also emphasised by scheme trustee chair, Ian Edwards, who said: “The trustee is pleased to have concluded a collaborative process with our sponsor and Fnac Darty, that has enabled us to take advantage of our improved funding level to complete this successful buy-in transaction with Canada Life, which will provide long-term security for our members’ benefits.”

Adding to this, LCP partner, Charlie Finch, said: “I am pleased to have helped the scheme reach this major milestone, providing cost certainty for Fnac Darty and long-term security for the former employees of Comet.

"This was a highly competitive broking process – a consistent pattern we have seen in the run-up to the year-end, and we expect to continue into next year, offering opportunities for sponsors to de-risk their DB pension schemes.”

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