The Tennants Consolidated Limited Pension Scheme has completed a £102m full scheme bulk purchase annuity buy-in transaction with Royal London.
The transaction, which concluded in September 2024, secured the benefits of 463 pensioners and 241 deferred members.
“This transaction demonstrates the depth and breadth of our execution and operational capability and our ability, even at this early stage in our journey, to innovate and deliver client-led bespoke solutions. Working very closely with the team at K3 and the trustee was paramount in forging a path that met the needs of the trustees, Tennants, and crucially, all members of the scheme,” said Baljit Khatra, BPA Origination Lead at Royal London.
This deal marks Royal London’s second external transaction in the bulk annuity market with K3 Advisory, the scheme’s advisor, since entering the market this year.
“This transaction had several complexities, from dealing with illiquid assets to managing specific benefit and payroll requirements. Our team worked closely with the trustees and Royal London to resolve these challenges efficiently, ensuring the buy-in was completed smoothly and aligned with the scheme’s objectives. This deal really highlights the importance of having the right expertise to navigate the more complex elements that come up with transactions, and working with the right partners to ensure you can still deliver the right result for the scheme in a timely and cost-efficient way,” said Adam Davis, Managing Director at K3 Advisory.
“K3 Advisory played a pivotal role in guiding us through this complex process. Their expert understanding of the challenges we faced, combined with their collaborative approach, meant we could confidently secure a positive outcome for our members. Their experience in managing the unusual complexities of this transaction was crucial to its success,” said John Nestor, Professional Trustee at Capital Cranfield Trustees and Chair of Trustees.