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The CP Pharmaceuticals Ltd Pension Scheme has completed a full buy-in for £28m, covering the benefits of all 317 scheme members.
The 46 pensioners and 271 deferred members were insured with Just Group in October last year, with Broadstone providing annuity broking and investment consulting, and Eversheds Sutherland giving legal advice, while Capita offered additional trustee advice.
Wrexham-based CP Pharmaceuticals is part of Indian pharmaceutical and biotechnology group Wockhardt, which specialises in generic pharmaceuticals. In the UK, the firm has been providing a fill-finish service for the AstraZeneca Covid-19 vaccine among others.
The pension scheme will now move to full buyout. Trustee chair James Higgins said: “Just and Broadstone worked together superbly with our other advisers to complete this transaction. We are delighted to have now secured benefits for all of our members with no additional contribution required from the company and look forward to winding up the scheme.”
Mark Channon, a senior actuarial director at Broadstone who led on the deal, said: “As soon as the trustees became aware that the scheme potentially had sufficient assets to secure member benefits in full, discussions began on protecting the position and preparing it for the insurance market. It is great to have completed this transaction in a vibrant market, without needing any additional contribution from the sponsor.”
Just Group’s Martin Parker, senior business development manager, added: “We look forward to continuing to work collaboratively towards the scheme winding-up and providing security and a supportive experience for the members long into the future.”
The buy-in and buyout market is currently booming as many DB schemes find their liabilities have shrunk more than their assets thanks to higher gilt yields and are bringing their risk transfer plans forward.
Just’s bulk annuity transactions announced in 2023 included a £513m buy-in with the GKN Group Pension Scheme, a £70m buy-in with brewery SA Brain & Co’s pension schemes and a £40m buy-in with the BUT Retirement Benefits Scheme, for the employees of the turkey breeder.
Last summer, Just Group announced three strategic new hires to bolster its defined benefit derisking business.
