AOUK Pension Scheme completes £11m buy-in

Written by Sophie Smith

30/06/2023

The American Optical UK (AOUK) Pension Scheme has completed an £11m full scheme buy-in, in a deal that has been highlighted as evidence that even the smallest of schemes can receive strong insurer engagement.

The trustee was able to transact within three months of deciding to go to market and at competitive pricing and terms, with preparatory work carried out by the sole trustee and sponsoring employer, Carl Zeiss Vision UK Ltd, highlighted as “key” to this.

The buy-in was completed under LCP’s streamlined buy-in and buyout service, bringing the total liabilities secured through this service to over £2.7bn.

LCP also highlighted the deal as evidence that even the smallest of schemes can receive strong insurer engagement through its streamlined service, despite record activity levels in the buy-in and buyout market. It revealed that, amid the increase in demand, insurers are increasingly requiring sub-£100m transactions to use a streamlined transaction process.

AOUK Pension Scheme trustee and Vidett client director, Mark Fletcher, stated: “I am very pleased to conclude this buy-in with Just Group for the AOUK scheme and its members.

“Through detailed preparation and working in partnership with the sponsor, we were able to move nimbly and take advantage of the favourable market conditions.”

Carl Zeiss Vision UK&I finance and legal director, Matthew Guilliatt, added: “I am thrilled that we have collectively completed the buy-in, in such a smooth and efficient manner. 

“The streamlined approach from LCP, along with the close collaboration with the trustee and wider stakeholders, has enabled a seamless process to be concluded swiftly and a great outcome for the scheme.”

Just Group DB business development manager, Kishan Radia, also said that there is a “vibrant consolidation market for schemes of all sizes”, highlighting the deal as a “great team effort with high levels of collaboration shown by all parties involved”.

LCP partner, Catherine Hopper, added: “We are pleased to have been able to deliver such a favourable outcome and are looking forward to supporting many other smaller schemes – we are working on double the number of streamlined transactions than we were this time last year.”


This article first appeared on our sister title, Pensions Age.

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