Two pension schemes sponsored by CF Fertilisers UK Limited, the UK subsidiary of a global manufacturer of hydrogen and nitrogen products for clean energy, have completed bulk purchase annuity buy-in transactions with M&G.
The transaction, worth a combined £265m, secures the pension benefits of over 1,350 retirees and deferred members across the Kemira Growhow UK Limited Pension Fund and the Terra Nitrogen (UK) Limited Pension Scheme.
“We are delighted that a strong partnership between the Trustee and the Company has allowed us to significantly accelerate our shared ambition to future-proof members’ benefits. A high degree of collaboration across a strong multidisciplinary team enabled us to navigate a complex process to achieve this very positive outcome. We look forward to partnering with M&G to ensure that we continue to deliver high quality services and benefits to our members,” said Susan Anyan, Chair of the trustee.
“We worked closely with the trustee, the company and their advisers at every stage of the process to understand how we could tailor our proposition to deliver an optimal member experience for both schemes and deliver on the needs of all beneficiaries. We look forward to supporting the trustee and their members to deliver excellent outcomes in the years to come. This demonstrates our ability to offer bespoke solutions to address scheme complexities as we continue to harness the strength of our integrated business model to offer innovative solutions for our clients,” added Rosie Fantom, Head of Bulk Annuity Origination & Execution at M&G.
The trustee was advised on the transaction by XPS as risk transfer adviser, Burges Salmon as legal adviser, PwC as covenant adviser and Mercer as investment adviser. EY and Eversheds Sutherland advised the company and CMS provided legal advice to M&G.
“We’re really pleased to have led on this transaction with M&G, on behalf of the trustee. Due to the complexity of the schemes’ benefits, an approach combining XPS risk settlement, actuarial and administration specialists, coupled with robust project management, was crucial. This meant we could leverage strong insurer competition and achieve a great outcome for the trustee, the company and most importantly the members,” said Jo Carter, Lead Adviser at XPS Group.
