Just Group has completed a £15 million PPF+ buy-in with The Group Trustees of the Carillion Group of the Electricity Supply Pension Scheme (“the Scheme”).
The transaction secures the benefits of all members of the Scheme comprising 33 pensioners and 89 deferred members at a level above Pension Protection Fund (PPF) compensation. The Scheme will now move to buyout.
This PPF+ transaction follows the Scheme entering the PPF assessment process in 2018 after the liquidation of its sponsor Carillion Group.
Vidett acted for the Scheme, Osborne Clarke provided legal advice for the Trustee and Aon was lead transaction adviser. Just Group was selected by Aon and the Trustees of the Scheme in a competitive process to ensure best value for members.
Prashant Mehta, Business Development Manager, at Just Group, commented: “The Scheme wanted to ensure members received the maximum benefit from the assets available, and we were glad to support this aim by being flexible in re-apportioning to member benefits any funds that became available after the data cleanse.
“We are very pleased to have secured benefits in excess of PPF levels for all the Scheme members. Scheme members should have peace of mind knowing that their benefits are secured with a financially strong insurer.
“At Just Group we are demonstrating our flexibility to work with schemes of all sizes, from small complex transactions to larger transactions in the region of £1 billion. There is an active market for consolidation for schemes whatever their size.”
Stewart Graham at Vidett, said: “This transaction required collaboration and flexibility to secure a positive outcome for the Scheme members. I’d like to thank everyone involved, including the support provided by the PPF, in completing this transaction during a busy and turbulent market.”
Dominic Grimley, Partner at Aon, said: “PPF+ transactions can be complex but by working closely with the Trustees and the insurer, we have delivered a great result for the Scheme’s members. We look forward to supporting the Trustees as the scheme now moves to full buyout.”
|
