The pension scheme of a ‘leading’ UK innovation and technology company has completed a £400m full scheme buy-in with Just Group.

The deal secures the benefits of all scheme members, consisting of around 2,500 pensioners and dependents, and 1,500 deferred members, while removing the investment and longevity risk from the sponsor.

Mercer acted as lead risk transfer adviser on the transaction, as well as insurer financial strength adviser, scheme actuary and investment adviser.

Eversheds Sutherland provided the trustees with legal advice, while Clifford Chance acted as legal adviser to Just Group.

The scheme sponsor’s legal adviser was CMS and Isio provided corporate actuarial, investment and insurance advice.

Commenting on the completion of the deal, Vidett professional trustee and independent chair of trustees for the scheme, Steve Southern, said the trustees were “delighted” to have achieved pension security for all members of the scheme.

“This is the culmination of 10 years of collaborative work between the trustees, advisers and sponsor,” he continued. “We are very pleased that Just was able to continue this collaborative theme and work to secure the right premium."

Just Group business development manager, Geraint Jones, noted that the transaction involved part payment of the premium in non-cash assets, which required strong collaboration with the scheme’s advisers and legal teams.

“There is a vibrant bulk annuity market for schemes of all sizes and we’re actively helping small, medium and large schemes,” he said.

Mercer partner and lead pension risk transfer adviser, Suthan Rajagopalan, added: “Securing a deal of this size and relative complexity in a market that has been so busy in the last few months is a great result for the scheme, sponsor, trustees and the pension scheme members.

“This deal demonstrated that schemes of this size are able to access competitive pricing backed by attractive reinsurance terms.

“Working with the Just team we were also able to find solutions to provide our client with certainty over pricing affordability, in specie asset transitions and managing short-term liquidity of less liquid assets via a deferred premium.”

---