Scottish Milk Retirement Benefits Plan completes £42m buy-in with Just Group

Written by Sophie Smith

27/08/2024

The Scottish Milk Limited Retirement Benefits Plan has completed a £42m buy-in with Just Group, securing retirement benefits for all 452 members of the scheme, including 292 pensioners and a further 160 deferred members.

The buy-in, which completed in June, also included a deferred premium element to enable the transaction to take place.

PwC acted as the lead pension risk transfer adviser on the transaction, while Mercer provided actuarial and investment advice to the trustees.

In addition to this, EY provided covenant advice to the trustees, while legal advice was provided to the trustees by Burness Paull, to the sponsor from Brodies, and to Just Group by Pinsent Masons

Chair of the trustees and BESTrustees chair, Zahir Fazal, described the transaction as “a key step in the trustees’ journey to enhance the security of member benefits”.

“The trustees are extremely grateful for the ongoing engagement and support from the sponsor to enable this positive transaction to be executed,” Fazal continued.

“Collaboration was the key to success and the PwC team worked collaboratively with the other advisers and with Just to ensure the scheme was well prepared and the transaction structure suited all parties.”

Adding to this, Just Group senior business development manager, Martin Parker, said: “We are delighted to have been selected by the trustees to complete a full-scheme transaction to secure the benefits for all 452 members of this scheme.

“Collaboration was key on this transaction and we worked closely with the scheme’s advisers and legal teams to structure a deferred premium element that enabled the deal to progress.

"This transaction is evidence of a vibrant bulk annuity market that’s working for schemes of all sizes.”

PwC head of bulk annuities, Dweenisha Caleechurn, also emphasised the importance of the “extensive preparatory work” done ahead of the deal, explaining that this enabled the scheme to “be nimble and execute a transaction ahead of planned timescales, evidencing the ongoing opportunities for well-prepared schemes of all sizes in this lively pension risk transfer market”.

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