The Mitchells & Butlers Pension Plan has completed a £1.2bn bulk purchase annuity deal with Standard Life, covering around 20,200 members of the scheme.

XPS Pensions Group acted as the lead adviser to the trustees, while legal advice was provided by Gowling WLG.

Standard Life senior business development manager, Rhian Littlewood, highlighted the deal as a “significant milestone” for the plan, emphasising the importance of properly preparing the scheme before approaching the market.

“Throughout the process, we worked closely with the trustees on a clear strategy and an innovative solution to help manage the sale of illiquid assets, which was crucial to the success of this transaction," Littlewood continued.

“Many schemes in the current market environment will face similar challenges to the plan, and Standard Life is able to support schemes through these to a successful outcome. This transaction demonstrates how innovation, good planning and co-operation between all parties can help facilitate a positive result.”

Adding to this, Mitchells & Butlers Pension Plan chairman of the trustees, Jonathan Duck, stated: "The trustees are very pleased to have concluded a full buy-in with Standard Life, following a period of strong investment performance and continued support from M&B plc, the plan sponsor.

“The plan advisors, XPS Pensions and Gowlings, alongside Standard Life, have also displayed great flexibility in structuring the transaction in such a way that buy-in has been possible several years earlier than anticipated.

“This is an excellent result for all plan members and for M&B plc, something that the trustees have worked hard to achieve over the years.

"Both the Mitchells & Butlers Pension Plan and Mitchells & Butlers Executive Pension Plan are now secured with buy-in policies, a great resolution to the historic challenge of past pension deficits."

The importance of preparation was echoed by XPS Pensions risk settlement partner, Jo Carter, who highlighted the deal as "one of the most complex transactions in recent years", explaining that significant planning and innovation was needed to tackle the Plan’s multiple illiquid asset holdings.

XPS Pensions risk settlement partner, Harry Harper, added: “Our strong relationships with insurers made it possible to spot improving opportunities and attract a wide range of insurer quotations, stealing a march on other large schemes that were slower out to market.

"Working collaboratively with Standard Life, the result has been to provide real certainty to over 20,000 members and to the sponsor by making a bulk annuity affordable at the current time, when previously it was considered to be years away.”

Also commenting on the deal, Gowling WLG partner, Christopher Stiles, added: "The M&B trustees have been a client of the Gowling pensions team for many years, so it is rewarding from both a professional and personal standpoint to see this excellent outcome for the plan members.

"The Gowling team is proud to have played its part in the preparation and delivery of the trustees' long-term strategy to secure member benefits."

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