The trustees were given a time limit on a £15m offer by their sponsoring employer to complete a transaction and with not enough time to carry out a buy-out, a buy-in – with a view to arranging a later buy-out – was the quickest option.
Fraser Sparks, a partner at Hammonds, who gave legal advice to the trustees,explained: "This transaction has been split into two stages; firstly through a bulk buy-in policy, where the scheme remains in existence, and then by way of a 'buy-out policy' for each individual member as part of the winding up.”
Akash Rooprai, lead broker for the transaction and a principal at Mercer, attributed Pension Insurance Corporation’s ability to complete the deal speedily as helping them win the contract.
Keywords: pension, trustees, time, policy, contract, scheme remains, insurance, transaction, short, complete, individual, pension insurance, stages firstly, akash rooprai, individual member, rooprai lead broker, insurance corporation’s ability, pension insurance corporation’s, attributed pension insurance, mercer attributed pension
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