London-based pension consultancy firm, Lane Clark & Peacock (LCP), has successfully advised on a significant £90 million bulk purchase annuity transaction between Just and the Hammerson Group Management Limited Pension and Life Assurance Scheme.
The completion of this transaction in December 2022 marks a crucial milestone in the Scheme’s journey towards securing the retirement benefits of its members.
Over the past three years, Hammerson, in close collaboration with the Trustees of the Scheme, has taken substantial steps to enhance the Scheme’s financial standing.
From a £100 million deficit three years ago, the Scheme has now transitioned to a fully insured basis. This transformation was achieved by carefully de-risking the Scheme’s investment strategy, providing a corporate guarantee, and injecting £55 million into the Scheme between 2020 and 2022.
Tim Gilbert, Partner at LCP, expressed his satisfaction with the successful transaction, stating, “Helping Hammerson and the Trustees complete this transaction was the latest step in our longstanding relationship. The Scheme was well prepared, and LCP’s streamlined buy-in service efficiently took advantage of attractive pricing, with just two weeks between the selection of Just and the execution of the contract. In an increasingly busy market, efficient execution is key to helping smaller schemes take advantage of attractive pricing.”
Nicholas Hardie, Chair of the Trustee Board, expressed his contentment with the agreement, emphasising the security it brings to Scheme members. He said, “Last year, LCP helped us identify the opportunity to fully insure members’ benefits, and I am delighted that we were able to transact decisively and swiftly. LCP gave us confidence that we were able to capture the improvement in the position through an efficient process with robust contractual terms.”
Peter Jennings, Head of Defined Benefit Sales at Just, also expressed his delight at being selected as the Scheme’s preferred insurer. He highlighted the vibrant consolidation market for schemes of all sizes and expected a busy year ahead in 2023. Jennings praised LCP’s streamlined buy-in service for presenting well-structured transactions and ensuring an efficient process.
