Scottish scheme completes £7.5m buyout through streamlining
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The Gleaner Pension Scheme has concluded a full buyout for £7.5m, using the streamlined services of an adviser and an insurer.
The scheme used Broadstone’s SM&RT Insure process in tandem with Aviva Clarity, the insurer’s streamlined service. The £7.5m transaction secures the benefits of all 121 members, comprising 26 deferred members and 95 pensioner members, and covers all the Scheme liabilities.
No extra contributions were needed for the transaction. Gleaner is a Scottish fuel supplier for the agricultural, domestic and commercial sectors.
Scottish Pension Trustees acted as sole trustee, while Broadstone was the annuity broker, in addition to being the scheme actuary and administrators. Legal advice was provided to the trustee by Burness Paull. Aviva used its in-house lawyers.
“This is fantastic news for the scheme. We’re especially grateful to the sponsor Gleaner Ltd for their support to allow this transaction to take place, as well as Broadstone for their expert guidance throughout the process. With the legacy arrangement behind us, the company can move forward confidently, free from its costs and risks, while the trustee and members can rest assured that benefits are securely in place with one of the insurance market leaders,” said George Emmerson, a professional trustee at Capital Cranfield, to which Scottish Pension Trustees belongs.
Andrew Shaposhnikov, BPA senior deal manager at Aviva, said: “The swift completion of this transaction highlights how well prepared this scheme was in advance, and we extend our thanks to the trustees and their advisers for their meticulous efforts.”
George Whitaker, deal lead at Broadstone, said: “We were able to take advantage of an opportunity to transact quickly using Aviva Clarity, achieving attractive terms for all parties and safeguarding members’ hard-earned pensions.”
Earlier this month, Just Group announced it completed a £28m buy-in for the ELG Haniel Metals Ltd Pension and Assurance Scheme in December last year, having worked with the trustees and adviser Mercer to identify potentially advantageous market conditions the previous month. The transaction insures the benefits for 99 deferred members and 81 pensioners.
On Monday, consultancy Isio predicted that heightened economic and market uncertainty will bring discussions on endgame solutions to the fore and continue to fuel the risk transfer market. Adam Davis, Isio partner and founder of specialist risk transfer advisers K3, said small and micro schemes can find insurers if they approach the market in the right way.
The scheme used Broadstone’s SM&RT Insure process in tandem with Aviva Clarity, the insurer’s streamlined service. The £7.5m transaction secures the benefits of all 121 members, comprising 26 deferred members and 95 pensioner members, and covers all the Scheme liabilities.
No extra contributions were needed for the transaction. Gleaner is a Scottish fuel supplier for the agricultural, domestic and commercial sectors.
Scottish Pension Trustees acted as sole trustee, while Broadstone was the annuity broker, in addition to being the scheme actuary and administrators. Legal advice was provided to the trustee by Burness Paull. Aviva used its in-house lawyers.
“This is fantastic news for the scheme. We’re especially grateful to the sponsor Gleaner Ltd for their support to allow this transaction to take place, as well as Broadstone for their expert guidance throughout the process. With the legacy arrangement behind us, the company can move forward confidently, free from its costs and risks, while the trustee and members can rest assured that benefits are securely in place with one of the insurance market leaders,” said George Emmerson, a professional trustee at Capital Cranfield, to which Scottish Pension Trustees belongs.
Andrew Shaposhnikov, BPA senior deal manager at Aviva, said: “The swift completion of this transaction highlights how well prepared this scheme was in advance, and we extend our thanks to the trustees and their advisers for their meticulous efforts.”
George Whitaker, deal lead at Broadstone, said: “We were able to take advantage of an opportunity to transact quickly using Aviva Clarity, achieving attractive terms for all parties and safeguarding members’ hard-earned pensions.”
Earlier this month, Just Group announced it completed a £28m buy-in for the ELG Haniel Metals Ltd Pension and Assurance Scheme in December last year, having worked with the trustees and adviser Mercer to identify potentially advantageous market conditions the previous month. The transaction insures the benefits for 99 deferred members and 81 pensioners.
On Monday, consultancy Isio predicted that heightened economic and market uncertainty will bring discussions on endgame solutions to the fore and continue to fuel the risk transfer market. Adam Davis, Isio partner and founder of specialist risk transfer advisers K3, said small and micro schemes can find insurers if they approach the market in the right way.
What do small and micro schemes need to do to achieve buy-in or buyout?
