Insurance company Just Group has helped a pension scheme exit the Pension Protection Fund’s (PPF) assessment period through a £5m buy-in.
Bournemouth Transport Limited, which operated under the name Yellow Buses, went into administration in 2022 and its defined benefit pension scheme entered PPF assessment.
Late last week, it was announced that the Bournemouth Transport Limited Pension Plan had agreed a buy-in with Just Group worth approximately £5m.
The deal secures pensioner and deferred members’ benefits, covering around 100 people. It means members will receive benefits at or above PPF compensation levels.
The pension scheme will now progress to a buyout with Just, expected to be completed next year.
Open Trustees – owned by law firm Osborne Clarke – is the sole trustee to the scheme. Jonathan Hazlett, Open Trustees’ managing director, said: “It is well known that the insurance market is extremely busy at the current time with many much larger schemes looking to de-risk. It can be very challenging to secure member benefits for smaller schemes, and PPF plus transactions can be complex.
“Notwithstanding this, Just has shown that it is able to accommodate deals of all sizes and complexity. Many members will now receive higher benefits than they might otherwise have expected had the scheme entered the PPF.”
Emma Horsfield, risk transfer specialist at Hymans Robertson, added: “For smaller pension schemes, it is important to focus on getting the best value out of what can be, at times, a challenging market. This excellent result reflects the strong collaboration between all parties involved, particularly Just’s flexible and pragmatic approach, which was key in delivering the best possible outcome for the members of the scheme.”
Dan Collins, PPF relationships manager, said: “Securing benefits for schemes without ongoing employer support highlights the strength of collaboration across our panels and our commitment to delivering the best possible outcomes for schemes that enter PPF assessment.”
Hymans Robertson was the lead adviser to the trustee, while Gowling provided legal advice.
