Compass Group on derisking path with £1.5bn buy-in
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The Compass Group Pension Plan has insured the benefits of over 14,000 pensioners and 11,000 deferred members with a £1.5bn buy-in.
The trustees of the global foodservice group chose Standard Life to secure the liabilities of most scheme members.
Mercer was the lead broker and transaction adviser to the trustees, as well as providing actuarial advice. The trustees took legal advice from Eversheds Sutherland and investment advice from Aon. The sponsor’s lead transaction adviser was LCP, while Freshfields gave legal advice.
“This transaction represents a significant milestone and is the culmination of a multi-year journey by the trustee to improve the security of members’ benefits,” said Philip Whittome, a professional trustee at Capital Cranfield who chairs the Compass scheme.
“We are supportive of the trustee’s actions. These reduce the risk exposure of the plan and enhance the security of members’ benefits,” said Jim McInally, group reward director at Compass.
He added that support from the trustee and advisers meant the plan received attractive pricing and terms.
Kieran Mistry, director of defined benefit solutions at Standard Life, said: “This transaction demonstrates the value of careful and thorough preparation. The plan came to market with clear requirements, allowing us to focus on delivering solutions which meet the trustee and company’s derisking objectives.”
Standard Life, part of Phoenix Group, most recently announced a £250m buy-in with Halma, a group of safety equipment companies, and a £100m buy-in with an unnamed travel caterer before that.
The trustees of the global foodservice group chose Standard Life to secure the liabilities of most scheme members.
Mercer was the lead broker and transaction adviser to the trustees, as well as providing actuarial advice. The trustees took legal advice from Eversheds Sutherland and investment advice from Aon. The sponsor’s lead transaction adviser was LCP, while Freshfields gave legal advice.
“This transaction represents a significant milestone and is the culmination of a multi-year journey by the trustee to improve the security of members’ benefits,” said Philip Whittome, a professional trustee at Capital Cranfield who chairs the Compass scheme.
“We are supportive of the trustee’s actions. These reduce the risk exposure of the plan and enhance the security of members’ benefits,” said Jim McInally, group reward director at Compass.
He added that support from the trustee and advisers meant the plan received attractive pricing and terms.
Kieran Mistry, director of defined benefit solutions at Standard Life, said: “This transaction demonstrates the value of careful and thorough preparation. The plan came to market with clear requirements, allowing us to focus on delivering solutions which meet the trustee and company’s derisking objectives.”
Standard Life, part of Phoenix Group, most recently announced a £250m buy-in with Halma, a group of safety equipment companies, and a £100m buy-in with an unnamed travel caterer before that.
