On the go: The circa £152.1mn defined benefit section of the Mencap Pension Plan has signed a £61mn bulk annuity transaction with Canada Life.
Canada Life was selected following a one-round appointment process and the deal covers 710 scheme members. It is the Mencap Pension Plan’s first bulk annuity deal.
“The trustee board are delighted we have taken this step. It is a significant achievement in our strategy to continually reduce risk and improve the security of our members’ benefits,” Sally Pococke, Mencap chair of trustees said.
The DB section of the Mencap Pension Plan has been closed to new members since 2002 and to future accrual since 2009. Aon advised the scheme on the transaction.
Kempen Capital Management has been the fiduciary manager for the DB section since 2017. It aims to invest 80 to 90 per cent of the portfolio in matching assets and the remaining 10 to 20 per cent in alternatives.
This article originally appeared on MandateWire.com
