The FirstGroup Pension Scheme’s group section has finalised a £90m full buy-in with Aviva Life and Pensions UK, securing the benefits of over 500 scheme members.
LCP led the transaction on behalf of the trustee, while Stephenson Harwood provided legal advice.
Commenting jointly, Capital Cranfield Pension Trustee Limited professional trustee, Lukshmi Selvarajah, and co-chair of the trustee, Martin Carroll, said: “Throughout the process, our priority was to achieve a strong overall outcome, combining value for money and security for our members' benefits.
“The close collaboration between the trustee, sponsor and adviser teams was essential in achieving this outcome within an accelerated timeframe.”
FirstGroup Plc CFO, Ryan Mangold, added: “Since 2020, we have settled about £1.7bn of pension obligations, securing the pensions of former employees, substantially reducing pension risk and realising value for the group.
“Our remaining pension schemes are well funded, and our focus remains on managing them efficiently while maintaining a strong balance sheet to support our capital allocation priorities.”
The process was completed on an accelerated timetable, with only three months between initial planning and the transaction completing.
LCP partner and lead transaction adviser, Rachel Hirst, said: “Despite the pace of the process, we were able to create strong competitive tension and maintain a clear focus on the features that mattered most to the trustee and members.”
