Compass Group Pension Plan has concluded a £1.5bn buy-in transaction with Standard Life, securing the benefits of over 14,000 pensioner members and over 11,000 deferred members.
Philip Whittome, chair of the fund’s trustee board and professional trustee at Capital Cranfield, said the transaction represents a “significant milestone” and is the culmination of a multi-year journey by the trustee to improve the security of members’ benefits.
Jim McInally, group reward director at Compass Group, added that the company was “supportive” of the trustee’s actions which “reduce the risk exposure of the plan and enhance the security of members’ benefits”.
Kieran Mistry, director of defined benefit solutions at Standard Life, said the transaction demonstrated the value of careful and thorough preparation.
He said: “The plan came to market with clear requirements, allowing us to focus on delivering solutions which meet the trustee and company’s de-risking objectives. It was great to work with the plan’s advisers throughout the process, culminating in a smooth and efficient execution.”
Mercer was the lead broker on the project and transaction adviser to the trustee, as well as providing additional actuarial advice. The trustee was also supported by Eversheds Sutherland providing legal advice, and Aon providing investment advice. XPS Pensions is the plan’s administrator. LCP was the lead transaction adviser to the company and provided actuarial and strategic advice. Freshfields offered legal advice to the company.
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