Steelmaker's UK scheme agrees £40m buy-in
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The Metallus UK Pension Scheme has completed a £40m buy-in, insuring the benefits of 493 members.
Royal London, which took on the liabilities, said a key feature of the transaction was the collaborative approach taken during the exclusivity period, allowing the parties to agree the expected journey from buy-in to buyout.
The scheme used Isio as risk transfer adviser, with legal advice from Gowling WLG and administrative and actuarial support from Aon.
“This buy-in helps to provide certainty to our nearly 500 members about the security of their benefits and represents a pivotal moment in the scheme’s derisking journey,” said Zahir Fazal, who represents Bestrustees at the scheme.
Clodagh Howe, bulk purchase annuity origination manager at Royal London, said: “This transaction reflects our commitment to delivering solutions that are tailored to each trustee board's objectives, regardless of pension scheme size. By working closely together, we were able to provide the trustees with a clear and pragmatic roadmap to buyout, providing greater certainty around the pension scheme's endgame.
Metallus UK is affiliated to Ohio-based Metallus Inc., previously known as TimkenSteel.
Recent bulk annuity deals by Royal London include the schemes of the Royal Horticultural Society, jewellery company F. Hinds, the Leeds Building Society and Oxford Instruments.
