This transaction demonstrates Standard Life’s ambition in the Bulk Purchase Annuity (BPA) market and follows on from the £1bn buy-in with the Pearl Group, completed earlier this year. As well as providing insurance for the Scheme’s defined benefit pensions and the potential to convert to a buy out in the future, Standard Life has offered the Trustee an option to transfer the scheme’s Defined
Contribution funds to a Standard Life arrangement in due course too, which will give members the option of keeping their pensions in one place.
Lane Clark & Peacock (LCP) led the transaction with legal advice provided by Baker McKenzie. DLA Piper advised Standard Life.
Jo Myerson, a Trustee Director at Ross Trustees and the Chair of the Trustee of the Scheme, said: “I’m delighted that the benefits of our scheme members are now fully insured with Standard Life. Thanks to the thorough preparation and collaborative working between the Ross Trustees team, the Scheme’s advisers, LCP and Baker McKenzie, and representatives from the Company, we were well placed to capture an attractive pricing opportunity in the market and execute a transaction efficiently. Since being appointed to lead the Trustee Board, Ross Trustees has placed great emphasis on clear governance and a robust process in order to select the right insurer for our members.”
Rhian Littlewood, Senior BPA Business Development Manager at Standard Life, said: “We are delighted to have been selected to partner with the Trustee and provide a secure home for the pension benefits of Scheme members.
“This transaction demonstrates our expertise and our commitment to the buy-in and buy-out market, and we are pleased to welcome the Scheme members to Standard Life, a brand with a rich heritage of providing long term savings and retirement solutions. The continued growth of our BPA business also allows us to invest further into UK infrastructure and socially responsible projects that provide good returns as well as being vital to post-pandemic growth.”
Laura Davies, Partner at LCP, said: “We’re proud to have helped the Scheme to achieve this great outcome for its members, in Standard Life’s first full buy-in transaction. This is an example of LCP’s continued role in expanding the opportunities for our clients to purchase good value buy-ins and buy-outs from an increasing number of insurers. This follows LCP’s role in advising the M&S Pension Scheme in purchasing Phoenix Group’s first external £470m pensioner buy-in and their first longevity swap conversion for the LV= Employee Pension Scheme.”
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