On the go: Marks and Spencer has completed a £390m buy-in transaction with Aviva and a £360m similar transaction with Phoenix Group for its pension scheme, totalling around £750m in bulk annuity deals.
The M&S Pension Scheme, with £11bn in assets, now has 80 per cent of its pensioner liabilities insured through a series of transactions totalling roughly £3.7bn, a statement read.
According to Hymans Robertson, which has been working with M&S on the scheme’s derisking strategy, this succession of deals reduces the risk that the retailer will be required to contribute additional cash to the pension fund in future.
Graham Oakley, chair of the M&S Pension Trust, said the purchase of these additional buy-in policies provides “another important contribution to our ongoing objective of reducing risk in the scheme to increase the security of all members’ pensions”.
He added: “The collaborative approach and our existing relationships have allowed us to act quickly and complete further well-priced transactions.”
Richard Wellard, partner at Hymans Robertson, noted that M&S and its scheme trustees “were able to confidently undertake these transactions, despite the potential disruption from Covid-19, demonstrating that attractive terms can be secured where parties have the right governance and co-operation to act at the required pace”.
He added: “This is further evidence of the benefits of the steps undertaken in recent years to establish shared objectives and a collaborative approach to working.”
The trustees were advised by LCP and Linklaters on legal matters.
