An unnamed pension scheme sponsored by a UK financial services company has completed a £100m bulk purchase annuity transaction with M&G. The deal secures the benefits of 650 scheme members.
“This transaction demonstrates how trustees are increasingly looking beyond securing benefits and focusing on the value that can be delivered to members over the long term. Through BPA Plus, these pension scheme trustees have secured members’ benefits while also giving them the opportunity to benefit from potential future discretionary bonuses through M&G’s With-Profits Fund. We are pleased to be supporting the Trustee and look forward to providing members with the security and service they expect throughout their retirement,” said Rosie Fantom, Head of Bulk Annuity Origination & Execution at M&G.
The trustee was advised by Howden Employee Benefits, while legal advice was provided by Mills & Reeve. Howden Employee Benefits also provided actuarial and administration support to the scheme.
“We are delighted to have delivered this transaction for a leading financial services client. The scheme benefited from being exceptionally well prepared and it’s a sign of a healthy market that we obtained several very competitive bids. My team helped the Trustee to look beyond just pricing and assess the full range of solutions on offer in the market and the quality of delivery from insurers,” said Richard Gibson, Head of Risk Transfer at Howden Employee Benefits.
The transaction uses M&G’s BPA Plus proposition, which utilises the firm’s £138bn With-Profits Fund, and was completed in July.
