The Smiths Industries Pension Scheme has completed a £760m buy-in with M&G, securing the benefits of over 10,000 members and their dependents.
This was the scheme’s fifth and final buy-in, following four previous buy-ins with two other insurers (Canada Life and Pension Insurance Corporation), and means that all 17,000 scheme members are now insured.
The buy-in follows the buyout of Smiths’ other principal defined benefit scheme, the TI Group Pension Scheme, which completed a £900m buyout in May.
Smiths said the transactions were a key part of its strategy to de-risk its legacy obligations.
The final buy-in was executed by M&G’s wholly owned subsidiary, the Prudential Assurance Company.
Hymans Robertson acted as risk transfer adviser, while Aptia acted as scheme administrator, and Aon as scheme actuary.
Gallagher provided the scheme with investment advice and Sackers acted as the scheme’s legal adviser.
"I am proud to have supported our trustees in completing these landmark bulk annuity transactions,” said Smiths group pensions director, Simon Powell.
“The successful completion of these deals is a testament to the expertise, diligence and collaboration of the Smiths pensions team, our trustees and everyone involved.
“It reinforces our ongoing commitment to protect the long-term security of our members' benefits and ensures long-term financial stability to Smiths.”
Smiths Industries Pension Scheme chair of the trustee, Nicholas Godden, said the buy-in reflected many years of careful planning and collaboration between the trustee, sponsor, and their advisers.
M&G head of bulk annuity origination & execution, Rosie Fantom, added: “We are delighted to have been selected by the trustee as their trusted partner for their fifth and final buy-in.
“This is an important milestone for the Smiths Industries Pension Scheme, completing its move to fully secure members’ benefits.
“It also highlights the strength of our proposition and our ability to support schemes of varying size and complexity, with a focus on delivering tailored solutions, excellent administration and a positive member experience.”
