South East Water scheme secures 'complex' benefits
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The South East Water Pension Scheme completed a £120m buy-in for 700 pensioners and dependants and 300 deferred members in December last year.
The deal with Just Group follows a transaction with the insurer a decade earlier and means all of the members are now covered.
“We are delighted to have completed the scheme’s final buy-in, marking the successful conclusion of a significant derisking journey to enhance the long-term security of our members’ pensions,” said trustee chair Jo Stimpson.
The chief financial officer of South East Water, Andrew Farmer, added: “This milestone is the result of a well executed strategy developed years ago and has been achieved through a strong partnership with the trustee, reinforcing our commitment to long-term certainty for both our pension scheme members and company.”
Just said the latest buy-in – the second for this scheme but the fourth with the trustees – included a number of member benefits that were complex to insure, such as non-standard pension increases and member options.
“This second transaction secured all the remaining members’ benefits, including those whose non-standard benefits had previously been difficult to insure,” said Geraint Jones, business development manager at Just.
He said member experience and a proactive approach to environmental, social and governance issues were important to the trustees.
Hymans Robertson advised the trustees on the transaction, with Squite Patton Boggs giving legal advice. The sponsor had advice from Isio, and Just used in-house counsel.
The buy-in brings the number of deals Just has written to 129 for last year, with the insurer saying this represents a new record. Writing £5.4bn, Just had an 11% share of the market by volume, according to consultancy LCP.
The deal with Just Group follows a transaction with the insurer a decade earlier and means all of the members are now covered.
“We are delighted to have completed the scheme’s final buy-in, marking the successful conclusion of a significant derisking journey to enhance the long-term security of our members’ pensions,” said trustee chair Jo Stimpson.
The chief financial officer of South East Water, Andrew Farmer, added: “This milestone is the result of a well executed strategy developed years ago and has been achieved through a strong partnership with the trustee, reinforcing our commitment to long-term certainty for both our pension scheme members and company.”
Just said the latest buy-in – the second for this scheme but the fourth with the trustees – included a number of member benefits that were complex to insure, such as non-standard pension increases and member options.
“This second transaction secured all the remaining members’ benefits, including those whose non-standard benefits had previously been difficult to insure,” said Geraint Jones, business development manager at Just.
He said member experience and a proactive approach to environmental, social and governance issues were important to the trustees.
Hymans Robertson advised the trustees on the transaction, with Squite Patton Boggs giving legal advice. The sponsor had advice from Isio, and Just used in-house counsel.
The buy-in brings the number of deals Just has written to 129 for last year, with the insurer saying this represents a new record. Writing £5.4bn, Just had an 11% share of the market by volume, according to consultancy LCP.
