Spar pension scheme completes £11m buy-in with Just

Written by Sophie Smith

21/02/2024

The Spar UK Limited Pension Fund has completed an £11m buy-in deal with Just Group.

The transaction was made possible thanks to the preparatory work carried out by the trustees before approaching the market, including work to equalise guaranteed minimum pensions (GMPs) within the scheme.

PwC acted as the specialist risk transfer adviser on the deal, while legal advice was provided by Burges Salmon, and scheme actuarial and administration services were provided by Hughes Price Walker.

PwC lead risk transfer adviser, Sam Whalley, highlighted the deal as a good example of achieving great outcomes for members, trustees and sponsors even during such a busy time in the market.

"As the trustees completed GMP equalisation before going to market, we were able to agree a bespoke process which increased certainty in relation to the transaction price and timing which will pave the way to an efficient move to potential buyout in the near future," Whalley stated.

Just Group DB business development manager, Kishan Radia, added: “We’re pleased to have completed this transaction, securing the benefits for members of the Spar (UK) Limited Pension Fund.

"We’ve worked collaboratively with the trustees and their adviser to achieve a great outcome for all parties. The trustees completed GMP equalisation before approaching the market, so we were able to conclude this transaction very efficiently.

“We expect this will significantly reduce the time to achieve buyout, should that be pursued in the future. There is a vibrant bulk annuity market for schemes of all sizes, particularly those that have undertaken important preparatory activity.”

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