The Miller Retirement Benefits Scheme has completed a £100m bulk purchase annuity (BPA) transaction through M&G’s ‘BPA Plus’ proposition.
BPA Plus aims to combine the security of a traditional BPA with M&G’s £132bn With-Profits Fund, seeking to enable schemes to secure members’ core benefits while sharing in the potential for discretionary bonuses over time.
The transaction was executed through M&G’s subsidiary Prudential Assurance Company.
The Miller Retirement Benefits Scheme is sponsored by specialist insurance and reinsurance broker Miller Insurance Services.
LCP acted as risk transfer and investment adviser to the trustee on the deal, while Barnett Waddingham was scheme actuary and administrator, and Hogan Lovells provided legal advice.
The trustee said it chose M&G as the insurer due to its commitment to delivering an accelerated transition to buyout, the potential upside for members from discretionary bonus payments, and competitive pricing.
“We are delighted to have completed this transaction with M&G, securing members’ benefits while also offering the potential for enhanced outcomes in the future,” said LawDeb trustee, Daniel Barlow.
“The transaction was delivered in an efficient manner with great teamwork and collaboration between the trustee, sponsor and respective advisers.”
Miller Insurance group chief financial officer, Neil Perry, described the transaction as an important milestone in delivering greater certainty and security for its pension scheme members.
“We are pleased to have worked closely with the trustee, M&G and our advisers to achieve a strong outcome that supports both members’ benefits and the long-term objectives of the scheme,” he said.
M&G head of bulk annuity origination & execution, Rosie Fantom, added: “We’re pleased to support Miller Insurance in providing long-term security for its pension scheme members.
“This transaction demonstrates the benefits of BPA Plus, combining the certainty of a bulk annuity with the opportunity to deliver enhanced outcomes over time. We look forward to continuing our partnership with the trustee.”
