Lexmark Pension Plan agrees £46m buy-in with Canada Life

Written by Sophie Smith

24/04/2024

The Lexmark Pension Plan has secured a £46m buy-in with Canada Life, securing the benefits of all 177 scheme members, including 93 pensioners and 84 deferred members.

Broadstone provided annuity broking as well as scheme actuary, investment consultancy, secretarial and administration services, whilst legal advice was provided by Osborne Clarke

The deal was completed without the need for any additional contribution from the sponsor, thanks to the gradual funding improvements recorded by the scheme over a number of years.

The plan is now expected to proceed to full buyout and wind-up.

Commenting on the deal, chair of trustees, Richard Pells, said: “We had been planning to complete an insurance transaction for a while as the plan’s funding had been improving for some time.

“As a long-standing client of Broadstone, we had total confidence in their expertise to advise us on this significant step for the plan members and we are delighted with the result they achieved working with Osborne Clarke and Canada Life.

“Now that we have increased the security of our members’ benefits, we look forward to an orderly transition to Canada Life.”

Broadstone deal lead and scheme actuary, Mark Channon, also highlighted the deal as evidence that "preparation, patience and the right strategy can achieve a great result despite strong competition in the current insurance market".

“After following our SM&RT Insure process, the plan was well prepared to approach the market," he continued.

"This resulted in interest from several insurers and culminated in excellent pricing from Canada Life, completing the transaction without the need for any additional contribution from the sponsor."

“It is evidence that preparation, patience and the right strategy can achieve a great result despite strong competition in the current insurance market.”

Adding to this, Canada Life business development manager – bulk purchase annuities, Natalie Keeble, said: “The plan was well presented and ready to transact so we were pleased to be asked to quote and then selected as the trustees’ chosen insurer.

“This scheme continues to build on our capability to insure both in payment and deferred members and we look forward to working through the next steps and welcoming the plan members to Canada Life.”

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