South East Water Pension Scheme completes £120m buy-in with Just Group

Written by Sophie Smith

14/04/2025

The South East Water Pension Scheme has completed a £120m buy-in with Just Group, securing the benefits of around 700 pensioner and dependent members and almost 300 deferred members.

This included a number of member benefits that were complex to insure, such as non-standard pension increases and member options, as Just was able to structure the deal to incorporate these.

The deal, which concluded in December 2024, also builds on a previous buy-in agreed with Just in 2015, completing the scheme's objective of guaranteeing all member benefits, including more complex non-standard benefits.

Hymans Robertson acted as lead transaction adviser to the trustee, while Squire Patton Boggs provided legal advice to the trustee and Just was represented by in-house counsel. Isio also provided advice to the sponsor.

South East Water chief financial officer, Andrew Farmer, highlighted the deal as an "important step" in further de-risking the group's pension liabilities while strengthening the security of members’ benefits.

"This milestone is the result of a well-executed strategy developed years ago and has been achieved through a strong partnership with the trustee, reinforcing our commitment to long-term certainty for both our pension scheme members and the company," he said.

Adding to this, trustee chair, Jo Stimpson, said: “We are delighted to have completed the Scheme’s final buy-in, marking the successful conclusion of a significant de-risking journey to enhance the long-term security of our members’ pensions.

"This achievement has been made possible through years of close collaboration with South East Water and the invaluable guidance of our advisers, ensuring the best possible outcome for our members.”

Also commenting on the deal, Just Group business development manager, Geraint Jones, said: “We are delighted to have collaborated for a fourth time with the trustee and for a second time on this scheme. This second transaction secured all the remaining members’ benefits, including those whose non-standard benefits had previously been difficult to insure.

"The de-risking process is now complete and the member benefits secured. Member experience and a proactive approach to environmental, social and governance (ESG) were also important to the trustee so we are proud that our track record and approach could meet their needs.

"We look forward to providing a brilliant member experience for the Scheme’s members in the years to come.”

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