The Compass Group Pension Plan has secured a £1.5bn buy-in with Standard Life, covering the benefits of over 14,000 pensioner members and 11,000 deferred members.

The deal, which completed in December 2024, covers the majority of the scheme's members, and is expected to "significantly" reduce risk exposure for the scheme and sponsoring employer, Compass Group PLC.

Mercer was the lead broker on the project and transaction adviser to the trustee, and also provided additional actuarial advice.

Eversheds Sutherland provided legal advice to the trustee, while Aon provided investment advice and XPS acted as the scheme’s administrator.

LCP was the lead transaction adviser for the sponsoring employer and provided actuarial and strategic advice, while Freshfields provided legal advice for the company.

Compass Group PLC group reward director, Jim McInally, thanked the trustee and all of the advisers for their support in ensuring that the plan was well positioned, which enabled the insurers to offer attractive pricing and terms

He also confirmed that the company is supportive of the trustee actions, which have reduced the risk exposure of the scheme and enhanced the security of members’ benefits.

“LCP and Freshfields provided the company with invaluable support and advice throughout the process to ensure that the optimal solution was implemented as intended,” McInally said.

Adding to this, Capital Cranfield professional trustee and chair of trustee board, Philip Whittome, said the transaction represented a “significant milestone” and was the culmination of a multi-year journey by the trustee to improve the security of members’ benefits.

"Thank you to the company, who we have worked with collaboratively throughout this time to achieve a mutually beneficial outcome for members and the sponsor," he continued.

“Mercer led a well-structured process and negotiated attractive pricing and terms to help us achieve our goals.

“This project has involved a massive effort from all advisers including Eversheds Sutherland, Aon, and XPS who supported the trustee alongside Mercer.”

Standard Life director of defined benefit (DB) solutions, Kieran Mistry, also highlighted the transaction as demonstration of the value of "careful and thorough preparation".

"We are delighted to have supported the trustee and company in securing the benefits of over 25,000 members," Mistry added.

"The scheme came to market with clear requirements, allowing us to focus on delivering solutions that meet the trustee and company’s de-risking objectives.

“It was great to work with the scheme’s advisers throughout the process, culminating in a smooth and efficient execution.”

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