An arts-based higher education pension scheme has completed a £12m buy-in with Just Group, securing the benefits of 155 pensioners and deferred members.
The transaction was advised by First Actuarial, a Gallagher company, which provided risk transfer consultancy, project management and investment services.
The firm worked alongside Capital Cranfield as the sole professional trustee and Arc Pensions Law as legal adviser.
“Capital Cranfield trustee, Jacqueline Wood, said that although it initially seemed to be a straightforward transaction, a number of "pension benefit complexities" soon arose.
Despite these complexities, she noted that First Actuarial and Just Group worked together to accommodate the scheme’s unique benefit features within the scheme rules and the insurer’s processes, while coordinating with the administrator, Isio.
Just Group deal manager, Alma Goyanes-Payne, added that the transaction showed how "even small schemes with complex needs can achieve their de-risking objectives and ensure an excellent member experience.”
Meanwhile, First Actuarial partner and head of risk transfer, Declan Keohane, stressed that the scheme’s "unique characteristics" required detailed preparation work and a tailored approach.
"They also called for proactive coordination and robust project management, carried out by First Actuarial risk transfer consultant, Oliver Nicholls,” he said.
Keohane added that the positive outcome highlighted the value of close collaboration between trustees, sponsors, advisers and insurers in developing solutions that reflected individual scheme circumstances.
Woods concluded that the transaction marked a "significant milestone" in securing long-term protection for the scheme's members’ benefits.
"It was a complex process, and we are grateful for the support provided by our advisers - First Actuarial, Arc Pensions Law, WBR Group, Isio, and Just - as well as for the additional financial support from the sponsor, without which the transfer of risk to the insurance market would not have been possible,” she said.
