LCP’s streamlined service for buy-ins and buy-outs surpasses £3bn with the latest c.£60m full buy-in between the Hyde Housing Scheme and Just
Pensions & benefits Pension risk transfer DB pensions LCP news Risk
Just Group plc (Just) and the Trustees of the Hyde Housing Association Limited Pension and Assurance Scheme (“Hyde Housing Scheme”) are delighted to announce that they have completed a c.£60m full buy-in of all remaining uninsured liabilities of the Hyde Housing Scheme.
The transaction builds on two existing buy-in policies secured with Just in 2015 and 2016, totalling c.£30m, which covered the majority of the pensioners at that time. This means that the full 850-strong membership is now insured.
LCP acted as lead transaction adviser using its streamlined buy-in and buy-out service. LCP’s streamlined service has now reached the milestone of having helped schemes secure over £3bn of liabilities through the service across nearly 80 transactions. The service provides schemes with a streamlined broking process with pre-agreed contracts. In the current busy marketplace, the service helps smaller schemes get more insurers to quote, leading to more competitive pricing, as well as access to contract terms that are normally available only for larger schemes.
Roger Cooper, Pi Partnership, Chair of the Trustees, said:
“As Chair of Trustees, I am delighted that we have been able to reach this position and underpin the security of our members’ benefits. I wish to thank my co-trustees and the Hyde management team for their support and engagement in reaching this milestone. Having an experienced team of advisers is crucial to any project, and this has enabled the Hyde Housing Scheme to move a step closer to our long-term objectives.”
Rod Holdsworth, Hyde Group’s Chief Financial & Resources Officer, said:
“The success of this complex project is down to the tremendous collaboration between Hyde, Just, LCP and the pension trustees. It’s allowed us to take advantage of opportunities in the marketplace to further improve the security of future pension benefits for colleagues, past and present. Simplifying the management of the scheme will also allow us to invest more in our customers’ homes and services.”
David Stewart, Partner at LCP, said:
“We are delighted that we have reached this major milestone of having helped small pension schemes secure over £3bn with insurers, in what is the busiest segment of the market. The Trustees of the Hyde Housing Scheme have been a great supporter of this service having also used it for their two previous transactions. It has been a pleasure working with the Trustees on this final stage of their de-risking journey.
We introduced the streamlined service to the market in 2011, and it continues to be popular with the insurers today due to its tried and tested formula and the volume that transacts through it. Over the last six months, we have helped ten schemes under £100m successfully transact and achieve highly competitive pricing using the streamlined service. This is at a time in the market when the evidence shows that smaller schemes are struggling to get insurer engagement through other routes.”
Geraint Jones, Business Development Manager, Just Group, said:
“The Trustee board has awarded Just a further transaction so we may deliver financial security to the remaining members of the Hyde Housing Scheme. At Just, we help people achieve a better later life, that’s our purpose and why we exist. When we achieve a repeat transaction like this one, it’s a strong endorsement that we are delivering outstanding service to scheme members and fulfilling our purpose.”