Standard Life targets full buyout in four months for £700m Deloitte scheme

The insurer completed a buy-in with the scheme last month, covering the benefits of all pensioners and deferred members. According to a press release from Standard Life, the pension scheme is now aiming for “an accelerated move to full buyout” to be completed by April 2026.

The buy-in agreement includes guaranteed minimum pension (GMP) equalisation to be carried out by Standard Life once the buyout is complete. By agreeing to take on this exercise, the insurer said it had removed “the key operational barrier” to meeting the required buyout timeline.

Rachel Tranter of Bestrustees, chair of the Deloitte scheme’s trustee board, described the deal as “ambitious”, given the “very specific” requirements of the scheme.

As well as the timeframe, the pension scheme had several different types of benefit structures, dating from previous corporate acquisitions. The trustee board worked closely with the employer and Standard Life to cleanse data and confirm benefits details, align the investment portfolio, and manage illiquid assets.

“The challenges we faced were not new, but we needed fresh thought from our advisers and the selected insurer to solve them,” Bestrustees’ Tranter said. “The collaboration on the project helped us achieve our goals and a successful outcome for our members. Our work is not done yet, but I am looking forward to working with Standard Life and the adviser team on the next phase of this project.”

‘Knottiest challenge’ of GMP equalisation

Kieran Mistry, director of DB solutions at Standard Life, said the GMP equalisation challenge was “one of the knottiest challenges in our industry”, but added that tackling it can “unlock derisking solutions for select schemes grappling with completing this exercise”.

Mistry also highlighted the efforts of Tranter and Deloitte director Anthony Kemp as being “instrumental” in preparing the pension scheme for the transaction.

“We hope that the fantastic outcome achieved on this transaction will give other schemes confidence that there are flexible routes through complex issues.”

Charlotte Quarmby, Aon

Aon was the lead adviser on the deal and the scheme’s actuarial adviser. Isio provided investment advice, GMP equalisation, and administration services, while Eversheds Sutherland was the legal adviser.

Charlotte Quarmby, risk settlement partner at Aon, said: “From the outset, our focus was on finding a practical way to meet the scheme’s unique objectives, and then working with the market to make that possible. Through clear articulation of requirements, we engaged with insurers to shape a bespoke solution.

“Standard Life has shown how constructive collaboration between trustees, sponsor, advisers and the insurer can unlock opportunities for schemes, addressing some of the biggest challenges in the industry right now. We hope that the fantastic outcome achieved on this transaction will give other schemes confidence that there are flexible routes through complex issues.”

Just swallows food group’s DB scheme in £16m deal

Separately, Argent Foods has insured its pension scheme with Just Group in a £16m full scheme buy-in. It covers the benefits of 170 pensioners and 45 deferred members of the Argent Group Europe Pension Scheme.

Broadstone advised on the deal, with CMS providing legal advice to the trustee board.

Malcolm Connelly, chair of the trustee board, said the scheme sponsor Argent Holdings had provided additional funding to pay the insurance premium. “We now look forward to working with Just and Broadstone to progress the data cleanse period and are confident that our members will be well looked after in the future,” Connelly said.

The buy-in utilised streamlined small-scheme services provided by both Broadstone and Just Group.