SPAR (UK) Ltd Pension Fund completes £11m buy-in

SPAR (UK) Limited Pension Fund completes £11m buy-in transaction with Just Group.

The sponsoring employer, SPAR (UK) Limited, is the leading convenience group in the UK with over 2,500 stores. The transaction was made possible through the preparatory work carried out by the Trustees before approaching the market, including work to equalise Guaranteed Minimum Pensions (GMPs) within the Fund.

PwC acted as the specialist risk transfer adviser, with legal advice provided by Burges Salmon. Scheme actuarial and administration services were provided by Hughes Price Walker.

Karein Davie, Professional Independent Trustee, Independent Governance Group (IGG), said:

“I’m delighted to have completed this transaction with Just, which provides a great outcome for members through greater security of their benefits. Just were able to demonstrate the capability and flexibility in meeting our key objectives from early on in the process. It has been a pleasure to be involved as a Professional Trustee from the start of the journey to ensure that we were well prepared before approaching the market and able to move at pace. I’d like to thank all of our advisers for their support. Working with PwC, to use their expertise and relationships to navigate a busy market allowed us to execute what is a really positive outcome for all parties. I am also grateful for the Company’s support and close collaboration throughout the journey, which was essential in helping us to reach this point.”

Lee Johnson, SPAR UK Strategy and Operations Director, said:

“This is a fantastic outcome for our members, who now have insurance-backed security of their pensions. We are delighted with the support we have received from all of our advisers to ensure the security of our members’ benefits is at the heart of what we do.”

Kishan Radia, Defined Benefit Business Development Manager, Just Group, said:

“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 buy-out, 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.”

Sam Whalley, PwC (Lead Risk Transfer Adviser), said:

“As an adviser to the Trustees, we worked closely with all parties to ensure a smooth quotation process, which resulted in a successful buy-in transaction with Just, this is especially notable given the unprecedented demand in the pension risk transfer market. This case is a good example of it being possible to achieve 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.”

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