The trustees were advised on the transaction by LCP, Buck (as the Scheme Actuary, investment adviser and administrator to the scheme) and their legal advisers Addleshaw Goddard, while Pinsent Masons provided legal advice to Just.
David Richardson, Group Chief Executive Officer at Just Group, said: “We are pleased to have supported the trustees and sponsor of the Ibstock Pension Scheme in their de-risking journey to help members. This is a significant milestone for our Defined Benefit Solutions business. It’s our largest single transaction to date and marks our 200th transaction. We have written over £7.5bn of premiums to secure the benefits of over 30,000 members since we entered the defined benefit de-risking market in 2012.”
Rachel Tranter, Director of BESTrustees and the chair of trustees for the Ibstock Pension Scheme, said: “I am delighted to have been able to lead the trustees of the Ibstock Pension Scheme to take practical and cost-effective steps to improve the security for all members of the scheme. Just provided clarity during a time of huge global uncertainty and our advisers skilfully guided us through the process to a successful conclusion; we always felt in safe hands and we’re pleased with the end result.”
David Stewart partner at LCP, said: “We are really pleased to have helped the trustees overcome the hurdles thrown up by Covid-19 to lock into pricing materially better than pre Covid-19 levels. This was a significant step in the trustees’ de-risking journey helping them secure around half of the scheme’s liabilities while reducing the shortfall required to meet their long-term goal. Since the start of lockdown LCP have helped 23 schemes take advantage of the attractive pricing post Covid-19.”
James Forrest Scheme Actuary at Buck , added: “Completing a full pensioner Buy-in is an important milestone in the scheme’s overall journey plan. Regular dialogue with the trustees and sponsor was key to ensuring all parties were aligned in reaching this common objective. This, combined with ongoing work in relation to data, benefits, and investment strategy, enabled the transaction to move at a fast pace when pricing was favourable. With the Buy-in transaction now complete, we will continue to work with the trustees to actively manage the scheme’s remaining risks.”
Rob Tellwright partner at Pinsent Masons, said: “We are delighted to have supported Just on the completion of their largest transaction, a significant milestone for Just's business. It required all parties to be ready to transact at speed as the lockdown eased and market conditions stabilised, so exceptional communication and a pragmatic, collaborative approach between all parties was critical.”
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