The Walkers Shortbread Limited Retirement Benefits Scheme has completed a £34m buy-in with Legal and General (L&G), securing the benefits of 161 retirees and 238 deferred members.

Barnett Waddingham served as an advisor to the trustees, while Pinsent Masons provided the trustees with legal advice.

The transaction was completed through L&G Flow, a tailored buy-in and buyout solution for smaller pension schemes.

The scheme is also a client of L&G’s Asset Management division, which invested and managed all the scheme’s assets, which led to the trustees working exclusively with L&G using its Flow solution.

As the scheme was invested in asset management funds, the trustees were able to
pay the premium via novation of their unit investments, ensuring an efficient asset transfer with no additional costs.

Commenting on the transaction, ProPensions Limited director and trustee board chair, Mike Kennedy, said it was a “textbook transaction” that showed the benefits of getting the preparation stages "right".

“Through Barnett Waddingham’s ongoing engagement with L&G, we identified an opportunity to transact sooner than planned," he added.

“With Barnett Waddingham’s clear and timely support, as well as that of our legal advisers at Pinsents, we were able to take advantage of that opportunity and secure a fantastic outcome for the scheme members and the sponsoring employer.”

Adding to this, Barnett Waddingham risk transfer partner, Adam Walker, and risk transfer consultant, Euan Sunderland, said that after nearly 20 years of working with the trustees and companies to create “greater” security for members, the scheme was “well prepared” to capitalise on a timing opportunity and do a deal with the client’s preferred insurer.

The pair said tthat he willingness of the trustees and company to act “quickly” resulted in a “great” outcome for scheme members.

L&G institutional investment head of origination & execution, Dominic Moret, added that the firm was “delighted” to have helped the scheme to secure and protect its members’ benefits.

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