Vector Pension Scheme completes buy-in with Standard Life

The Vector Pension Scheme has completed a £114m bulk purchase annuity transaction with Standard Life, covering all 1,800 members of the scheme.

The full scheme buy-in was completed in November and XPS acted as the lead adviser to the trustee, with legal advice provided by Osborne Clarke.

The trustee of the scheme worked with Standard Life over an extended period to monitor transaction affordability, alongside managing the scheme’s liquidity asset holdings.

Standard Life added that together with trustees and advisers it has completed “significant preparation work” to ensure that once the scheme’s assets were “transaction-ready”, the trustee was able to move quickly to secure member benefits.

Stephen Smith, trustee chair, said: “We are delighted to have brought security to our members’ pensions via our policy with Standard Life.”

Smith added that it was a “complicated” project that ran over several years.

He said: “We thank XPS and Osborne Clarke for the clarity and expertise they brought in assisting us through the process. tandard Life have been an open and willing partner through the project, and we look forward to working closely with them in the future.”

Rhian Littlewood, senior business development manager at Standard Life, said: “We have worked closely with the trustee for over two years to monitor the scheme’s funding position and strategy for managing the sale of the scheme’s illiquid asset holdings.”

Littlewood added that working closely with the scheme’s advisers to agree contractual terms in advance meant the fund was well-positioned to move quickly on a transaction when the time was right.

He continued: “This collaborative approach ensured a smooth and efficient de-risking process for the scheme, securing the liabilities for circa 1,800 members.”

Ash Williams, partner in the XPS risk settlement team and lead broker, added that the “collaborative and close partnership” with Standard Life and the “innovative execution structure” agreed up front was “effective” and allowed the trustee to take advantage of optimal market conditions and complete the transaction.

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