Law firm Grant Thornton has sealed a £275m buy-in for its defined benefit (DB) pension scheme with insurance company Royal London.
The transaction is the largest bulk annuity deal Royal London has completed since it entered the market in 2024. It is the seventh deal the insurer has completed this year.
The buy-in covers 2,200 members of the Grant Thornton Pensions Fund. The trustee board has also developed a project plan to reach full buyout with Royal London, according to the insurer.
It also stated that it was one of nine insurers that submitted proposals for the buy-in, “demonstrating a thriving industry with plenty of choice for pension scheme trustees and sponsors”.
Aon provided advice to the trustee board and the employer. Partner Leah Evans said: “Against the backdrop of a change in firm ownership, we were able to design a process that delivered maximum insurer engagement and choice for the trustees and allowed the firm to complete its parallel corporate restructuring activity with clarity and confidence over their pensions obligations.
“In a market where hundreds of schemes are navigating the path from buy-in to buyout and getting caught in bottlenecks, the approach to post-transaction implementation agreed with Royal London provides confidence that the fund will achieve buyout on time.”
Carl Williams, chair of the Grant Thornton Pensions Fund trustee board, said the scheme’s process and the advice given “meant we really could weigh up all options, including non-price factors, and we are confident that our members will be well supported”.
Malcolm Gomersall, CEO of Grant Thornton UK, said: “This transaction allows the firm to move forward with a focus on its own growth strategy, while knowing that the members of the fund are well looked after.”
