The Spar UK Limited Pension Fund has completed an £11m buy-in deal with Just Group.

The transaction was made possible thanks to the preparatory work carried out by the trustees before approaching the market, including work to equalise guaranteed minimum pensions (GMPs) within the scheme.

PwC acted as the specialist risk transfer adviser on the deal, while legal advice was provided by Burges Salmon, and scheme actuarial and administration services were provided by Hughes Price Walker.

Commenting on the deal, Spar UK strategy and operations director, Lee Johnson, stated: “This is a fantastic outcome for our members, who now have insurance-backed security of their pensions.

"We are delighted with the support we have received from all of our advisers to ensure the security of our members’ benefits is at the heart of what we do.”

Independent Governance Group (IGG) professional independent trustee, Karein Davie, agreed that the deal was a "great outcome for members", stating: “It has been a pleasure to be involved as a professional trustee from the start of the journey to ensure that the trustees were well prepared before approaching the market and then able to move at pace.

“I’d like to thank all of our advisers for their support. Working with PwC, to use their expertise and relationships to navigate a busy market allowed us to execute what is a really positive result for all parties.

"I am also grateful for the company’s support and close collaboration throughout the journey, which was essential in helping us to reach this point.”
PwC lead risk transfer adviser, Sam Whalley, highlighted the deal as a good example of achieving great outcomes for members, trustees and sponsors even during such a busy time in the market.

"As the trustees completed GMP equalisation before going to market, we were able to agree a bespoke process which increased certainty in relation to the transaction price and timing which will pave the way to an efficient move to potential buyout in the near future," Whalley stated.

Just Group DB business development manager, Kishan Radia, added: “We’re pleased to have completed this transaction, securing the benefits for members of the Spar (UK) Limited Pension Fund.

"We’ve worked collaboratively with the trustees and their adviser to achieve a great outcome for all parties. The trustees completed GMP equalisation before approaching the market, so we were able to conclude this transaction very efficiently.

“We expect this will significantly reduce the time to achieve buyout, should that be pursued in the future. There is a vibrant bulk annuity market for schemes of all sizes, particularly those that have undertaken important preparatory activity.”

---