The trustees of the Ibstock Pension Scheme have secured a £190m buy-in with Just Group, meaning that all of the scheme's defined benefit (DB) benefits are now covered.

The trustees received advice on the transaction from LCP, Buck and Addleshaw Goddard.

The buy-in builds on aprevious £340m buy-in transaction agreed with Just Group in 2020, which secured pension benefits for over 50 per cent of the scheme’s total liability.

The deal was made possible amid the recent rise in gilt yields and attractive pricing in the second half of 2022, as the existing relationship meant both Just and the scheme trustees were able to move quickly to lock in terms.

LCP also highlighted the role of the "innovative solutions" that Just, the trustees and the sponsor were able to agree for aligning the timings for premium payment to be synchronise with the timing of the trustees being able to realise the scheme’s assets, with a minority of its investments being either illiquid or subject to long notice periods.

Commenting on the deal, Ibstock Pension Scheme chair of trustees and Bestrustees trustee executive, Rachel Tranter, stated: “The trustees, working collaboratively with the sponsor, had a strategy of targeting full insurance over the next few years, and we’re delighted to have reached that target sooner than expected.

"This was a massive team effort from the trustees, the sponsor, all the advisers and Just to be able to transact over a very short timeframe with all parties working very effectively together to come up with a workable solution for some of the illiquid assets.

"We’re thrilled to have reached the point where the benefits for all our members are covered by insurance policies.”

Adding to this, LCP partner, David Stewart, highlighted the transaction as an example where the trustees maintained a strong relationship with Just and were able to react "nimbly" with the sponsor and other advisers to take advantage of the pricing opportunity in the market.

"It has been wonderful working with the trustees again to secure this excellent outcome for members," he continued.

"The Just team were able to tailor their proposal to make the transaction possible, taking into account the particular constraints on realising some of the scheme’s assets which highlights there are solutions available for schemes with illiquid assets."

Also commenting on the deal, Just DB commercial director, Rob Mechem, added: “There was a lot to be proud of with this transaction. We are delighted that the trustees again chose Just as their partner to entrust their members financial security.

"It was also an opportunistic transaction and as is often the case with such deals was conducted at speed, requiring solution focused mindsets and pragmatism from all stakeholders.”

Share Story: