440 pension scheme members set to receive their retirement benefits
The Andrew Sykes Group Pension Scheme has successfully completed a £30 million buy-in agreement with Canada Life, safeguarding the retirement benefits for 440 members, including 160 deferred members.
The deal, orchestrated through a competitive tender process led by Hymans Robertson, marks Canada Life's third deferred member transaction this year. In July, the company executed a £58 million buy-in with an undisclosed scheme, followed by a £24 million agreement with Roadchef in August.
“Delivering our third deferred member transaction in just three months shows how busy the buyout market is,” said Tim Coulson, managing director of bulk purchase annuities at Canada Life. “We will continue to focus on delivering fair value to trustees and their scheme members, developing our proposition to compete in wider opportunities in a rapidly growing market."
“We are very pleased to have helped the trustees secure this buy-in, removing the majority of the scheme's risks. With current market busyness, it can be hard for schemes of this size to get insurer engagement,” said Lara Desay, lead transaction adviser at Hymans Robertson.
“However, this transaction shows there continues to be opportunities for small schemes to secure an excellent transaction and great pricing if they approach the market in the right way,” Desay continued.
“This outcome was only possible due to the efforts of the scheme's trustees, their advisers, and the team at Canada Life.”
Legal counsel for the scheme was provided by Neon Legal, while Canada Life was represented by its in-house legal team.
“We are delighted to have advised the trustees on this transaction with Canada Life,” said Tushar Bhate, head of pensions at Neon Legal. “It is difficult for smaller schemes to obtain both the legal and commercial expertise required to complete projects of this nature, and we think this is a great example of how to successfully achieve a buy-in with a positive outcome for members of the Scheme at value.”
"A great deal of credit is owed to the trustees, Canada Life and Hymans Robertson,” Bhate added. “The excellent collaboration between the parties ensured that the transaction was completed smoothly."
