CRAC insures remaining liabilities in £2.8m buy-in
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The Careers Research and Advisory Centre has concluded a £2.8m full insurance buy-in for 30 deferred members and 10 pensioners.
The CRAC Pension Scheme chose Just Group for the small transaction, with Broadstone providing annuity broking as well as being the scheme actuary and administrators and giving investment advice. The trustees took legal advice from CMS.
The Cambridge-based charity had completed a pensioner buy-in with Just in 2014 but wanted to insure the remaining liabilities. Broadstone said it was estimated the scheme deficit had fallen to “an acceptable level” in early 2024 so asset derisking, data and benefit preparation started “at pace”.
CRAC’s chief executive, Clare Viney, said: “We were keen to complete this transaction to secure the benefits for our employees past and present but of course subject to ensuring value when using the charity’s reserves. Just was a natural place to start given our existing relationship, but what was really attractive was the ability to obtain more certainty on the likely contribution using the Beacon service.”
Beacon is Just’s price monitoring and bulk quotation service.
“When Broadstone was first appointed to provide actuarial and administration services in 2022, the scheme had an estimated buyout shortfall of over £3m,” said Broadstone deal lead George Whitaker, calling the transformation “dramatic”.
He added: “It is great to demonstrate once again that well prepared schemes of all sizes can achieve a cost-effective insurance transaction in a busy market.”
Just announced a £43m buy-in with the Wednesbury Pension Scheme last November, but has also entered into large transactions. The same month, it revealed a £1.8bn buy-in with the G4S Pension Scheme covering about 22,500 members.
The CRAC Pension Scheme chose Just Group for the small transaction, with Broadstone providing annuity broking as well as being the scheme actuary and administrators and giving investment advice. The trustees took legal advice from CMS.
The Cambridge-based charity had completed a pensioner buy-in with Just in 2014 but wanted to insure the remaining liabilities. Broadstone said it was estimated the scheme deficit had fallen to “an acceptable level” in early 2024 so asset derisking, data and benefit preparation started “at pace”.
CRAC’s chief executive, Clare Viney, said: “We were keen to complete this transaction to secure the benefits for our employees past and present but of course subject to ensuring value when using the charity’s reserves. Just was a natural place to start given our existing relationship, but what was really attractive was the ability to obtain more certainty on the likely contribution using the Beacon service.”
Beacon is Just’s price monitoring and bulk quotation service.
“When Broadstone was first appointed to provide actuarial and administration services in 2022, the scheme had an estimated buyout shortfall of over £3m,” said Broadstone deal lead George Whitaker, calling the transformation “dramatic”.
He added: “It is great to demonstrate once again that well prepared schemes of all sizes can achieve a cost-effective insurance transaction in a busy market.”
Just announced a £43m buy-in with the Wednesbury Pension Scheme last November, but has also entered into large transactions. The same month, it revealed a £1.8bn buy-in with the G4S Pension Scheme covering about 22,500 members.
