The Senior plc Pension Plan has completed a £180m buy-in with M&G, securing the pension benefits of over 3,000 members.
The bulk purchase annuity (BPA) deal was done through M&G’s wholly owned subsidiary, The Prudential Assurance Company Limited (PAC), and was finalised last year.
Scheme sponsor, Senior plc, is an international manufacturer of high technology components and systems for the aerospace and defence, land vehicle, and power and energy markets.
LCP acted as lead transaction adviser for the scheme and Osborne Clark provided the trustee with legal advice, while CMS acted as the legal adviser to M&G.
M&G said the transaction demonstrated strong alignment between itself, the trustee, and their advisers, which enabled a smooth execution of the buy-in that was in line with the scheme’s timescales.
The insurer offering the option of residual risk cover formed a ‘key part’ of the transaction.
“We are pleased to have partnered with the trustee and worked with LCP to deliver a smooth and timely buy-in for the plan,” commented M&G head of bulk annuity origination & execution, Rosie Fantom.
“This transaction highlights our ability to work flexibly with clients and provide exceptional member experience, something that is becoming ever more important given the increased funding level of schemes.”
Senior plc Pension Plan chair of trustee and Ndapt director, Sarah Leslie, said the buy-in was a key de-risking milestone for both the scheme and sponsor.
“The trustee and Senior plc worked diligently to complete this transaction with M&G, providing greater certainty for members,” she continued.
“The trustee was impressed by M&G’s approach and confident they will provide strong support during this next phase of the plan’s life and in continuing to serve the members.
“The process ran smoothly and the highly collaborative approach between M&G and the plan’s advisers was instrumental to ensuring a successful transaction.”
LCP partner, David Fink, added: “It was a pleasure to support the trustee on this significant transaction and achieve an excellent result for all stakeholders.
“The success of this transaction was driven by strong alignment between the trustee and Senior plc, M&G and advisory teams and a shared focus on delivering certainty and a positive experience for members.”
