The Deloitte UK pension scheme section of the Pensions Master Plan as concluded a £700m bulk purchase annuity buy-in transaction with Standard Life.
The transaction completed in January 2026 and secures the benefits of all pensioner and deferred members of the legacy defined benefit scheme. The deal is to be followed by an accelerated move to full buyout by April 2026. As part of the transaction, Standard Life will equalise Guaranteed Minimum Pensions (GMP) on behalf of the scheme following buy-out. This will involve Standard Life taking on additional responsibilities compared to a typical transaction, undertaking both the calculation and implementation of GMP equalisation as part of a bespoke solution.
“It has been an honour to lead the trustee through this ambitious transaction. Our requirements from the outset were very specific and partnering with an insurer that could deliver on the approach and member outcomes was crucial. The challenges we faced were not new, but we needed fresh thought from our advisers and the selected insurer to solve them. The collaboration on the project helped us achieve our goals and a successful outcome for our members. Our work is not done yet, but I am looking forward to working with Standard Life and the adviser team on the next phase of this project,” said Rachel Tranter, Chair of the Trustee for BESTrustees.
“This transaction was made possible through the diligent efforts of the Trustee, the Firm and their advisers. In particular, the experience of Rachel Tranter of BESTrustees and Anthony Kemp of Deloitte UK was clear and instrumental in readying a highly complex Scheme with many different types of benefit structures as a result of historic acquisitions,” said Kieran Mistry, Director of Defined Benefit Solutions at Standard Life.
“We’re pleased to have been a part of this journey, partnering with the scheme to repeatedly deliver solutions to their challenges and unique requirements and keep the project on track. Most notably, this included Standard Life committing to deliver a bespoke approach to one of the knottiest challenges in our industry, taking over equalising members’ GMP following buy-out, a solution which could unlock de-risking solutions for select schemes grappling with completing this exercise. We’re grateful to Deloitte for working with Standard Life to deliver on the scheme’s complex requirements and delighted to build on our relationship with the firm.”
Aon was the lead adviser on the transaction and provided actuarial advice to the trustee which was further advised by Isio across investment, GMP equalisation and administration, and Eversheds. Standard Life was advised by CMS. Deloitte UK was advised by Deloitte Legal.
“From the outset our focus was on finding a practical way to meet the Scheme’s unique objectives and then working with the market to make that possible. Through clear articulation of requirements, we engaged with insurers to shape a bespoke solution. Standard Life has shown how constructive collaboration between trustees, sponsor, advisers and the insurer can unlock opportunities for schemes, addressing some of the biggest challenges in the industry right now. We hope that the fantastic outcome achieved on this transaction will give other schemes confidence that there are flexible routes through complex issues,” said Charlotte Quarmby, Risk Settlement Partner from Aon.
