The Comet Pension Scheme has completed a £330m full-scheme bulk purchase annuity buy-in transaction with Canada Life. The deal secures the future benefits of 4,500 pension scheme members.
“The Trustee is pleased to have concluded a collaborative process with our sponsor and Fnac Darty, that has enabled us to take advantage of our improved funding level to complete this successful buy-in transaction with Canada Life, which will provide long term security for our members’ benefits,” said Ian Edwards, Chair of the Scheme Trustees.
“I am delighted that Canada Life UK has been selected by the Comet Pension Scheme Trustees and Fnac Darty as the Scheme’s pensions derisking partner, and I thank them for the full confidence they have in the strength and expertise of Canada Life UK and our global parent Great West-Lifeco to deliver a gold standard customer experience for their members. This transaction is a great demonstration of what can be achieved through collaboration, and how focused planning by all the parties involved can deliver positive long-term benefits for scheme members,” added Shreyas Sridhar, Managing Director, Bulk Purchase Annuities at Canada Life UK.
The sponsoring company of the Comet Pension Scheme is part of the consumer electronics and domestic appliances, culture and leisure products group Fnac Darty. The scheme was first formed in 2004 following the de-merger of Comet from Kingfisher and subsequently became part of Fnac Darty in 2016.
LCP was appointed by the sponsoring company as lead risk transfer adviser and broker on the deal, XPS is the scheme’s actuary and administrator, Eversheds Sutherland provided legal advice to the trustee while Macfarlanes provided legal advice to Fnac Darty. Canada Life’s legal adviser was CMS.
“This agreement with the UK pension Trustee represents a significant step in our long-term strategy. Working closely with the Trustee, we have covered this risk without impacting the Group’s cash position and secured members’ benefits with a leading insurer. We are pleased to have completed this transaction in favourable market conditions,” said Jean-Brieuc Le-Tinier, Chief Financial Officer of Fnac Darty.
“I am pleased to have helped the Scheme reach this major milestone providing cost certainty for Fnac Darty and long-term security for the former employees of Comet. This was a highly competitive broking process – a consistent pattern we have seen in the run-up to the year end and we expect to continue into next year offering opportunities for sponsors to de-risk their DB pension schemes,” said Charlie Finch, Partner at LCP and lead risk transfer adviser.