Several UK companies have recently secured buy-ins for their defined benefit (DB) pension schemes, ensuring the benefits of their members are protected. Amtico, a flooring manufacturer, completed a transaction with Standard Life last month, securing the benefits of 425 members. The deal also ensures that members with both DB and defined contribution (DC) pension arrangements, which are managed by Standard Life, retain the link between them. Alex Oakley, bulk annuity transaction manager at Standard Life, praised the long-standing relationship between the pension scheme and the insurance company, citing it as an example of successful collaboration.
Another company, Portakabin, a modular building manufacturer, has insured its DB pension scheme with Aviva for £160m. The deal, finalized in August, secures the benefits of over 1,900 members. Aviva had previously taken on Portakabin’s DC scheme into its master trust, allowing members to easily access additional voluntary contributions. Matt Cook, associate partner at Aon, which advised on the deal, noted that having nimble governance and a clear focus on objectives can drive the best outcome from the insurance market.
Additionally, an unnamed UK charity has secured a £15m buy-in with Legal & General (L&G), insuring the benefits of approximately 120 pensioners and deferred members. The deal was completed in under six months and represents a significant step towards full buyout, delivering real value for both members and the sponsoring charity. Ray Hughes, director at consultancy group Hughes Price Walker, which advised on the deal, praised the careful preparation of all parties and the benefit of experienced, specialist advice in a competitive market.
These deals demonstrate the growing trend of companies and organizations seeking to secure their DB pension schemes, ensuring the benefits of their members are protected. By working with insurance companies such as Standard Life, Aviva, and L&G, these organizations can eliminate substantial risk and future cost from their schemes, providing members with long-term benefit security and allowing the sponsoring companies to focus on their core activities. The use of buy-ins and buyouts can provide a sense of financial certainty and reassurance for both members and sponsors, and these recent deals highlight the importance of careful planning and collaboration in achieving successful outcomes.