Bibby Line trustee steers scheme to buy-in
Image: Björn Wylezich - stock.adobe.com
Pardon the Interruption
This article is just an example of the content available to mallowstreet members.
On average over 150 pieces of new content are published from across the industry per month on mallowstreet. Members get access to the latest developments, industry views and a range of in-depth research.
All the content on mallowstreet is accredited for CPD by the PMI and is available to trustees for free.
The trustee of the Bibby Line Group Ltd Pension Scheme, for employees of the shipping and marine operations company, has completed a £55m covering the pensions of 667 members.
The main objective for the transaction, concluded with Pension Insurance Corporation, was to secure the pensions of members whilst maintaining dedicated support for them, said Nicholas Chadha of Pan Trustees, the scheme’s sole professional trustee.
“In preparation for the transaction, we had already conducted a significant data cleansing process, allowing us to move quickly with the insurer of choice. We were really impressed with PIC’s ability to work at speed, alongside its clear focus on customer service and well thought through transition plan,” he added.
The pension risk transfer represents a strategic step in the long-term plan for the business, said Jonathan Lewis, chief executive of Bibby Line Group.
“Over recent years we have made substantial contributions to our pension scheme in order to progress towards this event. It removes an element of long-term risk from our balance sheet, while further strengthening the security of pension benefits for hundreds of our current and former employees. Completing it within a condensed timeframe reflects the strong collaboration and focus of everyone involved, and we are grateful for their commitment,” Lewis said.
The deal was advised by PwC. Risk transfer director at the firm, Tom Whiteley, praised the close collaboration between all parties “over a short but intense period”, and said: “The work that had already been carried out on the member data and scheme benefits meant that the scheme was in a great position to move at pace and quickly enter a buy-in transaction.”
George Milligan, origination actuary at PIC, also highlighted the tight timeframes, saying organisation was key because of this.
“Our teams were able to mobilise quickly to ensure that we could meet the timescales set by the trustee and achieve the main objective of the scheme, securing its members’ benefits for the long term,” Milligan said.
DLA Piper provided legal advice to the trustee, with Cartwright providing administration and actuarial advice. Law firm Herbert Smith Freehills Kramer advised PIC.
The main objective for the transaction, concluded with Pension Insurance Corporation, was to secure the pensions of members whilst maintaining dedicated support for them, said Nicholas Chadha of Pan Trustees, the scheme’s sole professional trustee.
“In preparation for the transaction, we had already conducted a significant data cleansing process, allowing us to move quickly with the insurer of choice. We were really impressed with PIC’s ability to work at speed, alongside its clear focus on customer service and well thought through transition plan,” he added.
The pension risk transfer represents a strategic step in the long-term plan for the business, said Jonathan Lewis, chief executive of Bibby Line Group.
“Over recent years we have made substantial contributions to our pension scheme in order to progress towards this event. It removes an element of long-term risk from our balance sheet, while further strengthening the security of pension benefits for hundreds of our current and former employees. Completing it within a condensed timeframe reflects the strong collaboration and focus of everyone involved, and we are grateful for their commitment,” Lewis said.
The deal was advised by PwC. Risk transfer director at the firm, Tom Whiteley, praised the close collaboration between all parties “over a short but intense period”, and said: “The work that had already been carried out on the member data and scheme benefits meant that the scheme was in a great position to move at pace and quickly enter a buy-in transaction.”
George Milligan, origination actuary at PIC, also highlighted the tight timeframes, saying organisation was key because of this.
“Our teams were able to mobilise quickly to ensure that we could meet the timescales set by the trustee and achieve the main objective of the scheme, securing its members’ benefits for the long term,” Milligan said.
DLA Piper provided legal advice to the trustee, with Cartwright providing administration and actuarial advice. Law firm Herbert Smith Freehills Kramer advised PIC.
