On the go: The House of Fraser Beatties & Jenners Pension Scheme has completed a £600mn buyout with Pension Insurance Corporation, covering 3,850 deferred members and 5,050 pensioners.
The scheme’s sponsor, House of Fraser, went into administration on August 10 2018. Consequently, the pension fund entered a Pension Protection Fund assessment period later that month following the voluntary liquidation of the remaining employer.
The trustees opted for a bulk annuity transaction after analysing the options available to secure member benefits over the long term, concluding that insuring benefits “is the best outcome for scheme members”, a statement read.
Steve Sargent, chair of the House of Fraser Beatties & Jenners Pension Scheme, said: “We are pleased to have been able to secure this buyout with PIC, which means members will receive higher benefits than they would have under the PPF.
“The buyout will also provide thousands of members with certainty and long-term security for their benefits.
“We see this as a very successful outcome following the challenges caused by the insolvency, and would like to thank PIC and our advisers who helped us achieve this result.”
CMS provided legal advice to the trustee on the transaction, while PIC was advised by Herbert Smith Freehills. LCP acted as lead adviser of the deal.
This article first appeared on MandateWire.com
