Car distributor's scheme harmonises benefits in £505m buy-in
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The Inchcape Motors Pension Scheme signed a £505m buy-in deal in 2024, insuring the liabilities relating to 2,295 retirees and 5,890 deferred members.
The trustees selected Legal & General for the buy-in last year. PwC served as lead adviser to the trustee and global car distributor Inchcape. Investment advice was provided by LCP, while XPS Group gave actuarial advice. Burges Salmon were the trustee’s lawyers, Slaughter and May advised L&G.
Trustee Julia Yates from professional trustee firm Vidett called the buy-in “another positive step in our ongoing strategy to ensure long-term security for all our members”.
As part of the buy-in, the scheme harmonised various benefits and options across the scheme’s sections and “to simplify things” is also harmonising some across scheme members, the trustees told members in January.
The changes relate mainly to “things like definitions used and early, late or ill health retirement”, according to the scheme, including: the definitions of spouse, dependant and eligible children; increases when a member dies within a year of retirement; an eligible child’s pension; late retirement restrictions; early retirement in good health; and ill health pension.
The pension fund has also stopped offering pension increase exchange to members, while in its Cash+ section, it introduced an option to convert the benefits into a pension within the scheme.
L&G’s UK pension risk transfer director Kai Hoffmann said: “We are pleased to have finalised this buy-in with the Inchcape Motors Pension Scheme, enhancing our existing relationship with the client and providing greater security for its members.”
The scheme had been a client of Legal & General Investment Management since 2018.
The trustees selected Legal & General for the buy-in last year. PwC served as lead adviser to the trustee and global car distributor Inchcape. Investment advice was provided by LCP, while XPS Group gave actuarial advice. Burges Salmon were the trustee’s lawyers, Slaughter and May advised L&G.
Trustee Julia Yates from professional trustee firm Vidett called the buy-in “another positive step in our ongoing strategy to ensure long-term security for all our members”.
As part of the buy-in, the scheme harmonised various benefits and options across the scheme’s sections and “to simplify things” is also harmonising some across scheme members, the trustees told members in January.
The changes relate mainly to “things like definitions used and early, late or ill health retirement”, according to the scheme, including: the definitions of spouse, dependant and eligible children; increases when a member dies within a year of retirement; an eligible child’s pension; late retirement restrictions; early retirement in good health; and ill health pension.
The pension fund has also stopped offering pension increase exchange to members, while in its Cash+ section, it introduced an option to convert the benefits into a pension within the scheme.
L&G’s UK pension risk transfer director Kai Hoffmann said: “We are pleased to have finalised this buy-in with the Inchcape Motors Pension Scheme, enhancing our existing relationship with the client and providing greater security for its members.”
The scheme had been a client of Legal & General Investment Management since 2018.
