Standard Life completes £114m buy-in with the Vector Pension Scheme

Standard Life completes £114m buy-in with the Vector Pension Scheme

Standard Life, a Phoenix Group company, completed a £114 million bulk purchase annuity transaction that included about 1,800 participants in the Vector Pension Scheme, funded by Vector Industries Limited.

In November 2023, the deal, which constituted a bulk buy annuity arrangement for the entire plan, was completed. Osborne Clarke LLP provided legal guidance throughout the process, with XPS Pensions Group acting as the trustee’s primary advisor.

The trustee of the scheme worked closely with Standard Life to manage the illiquid asset holdings of the Scheme and determine if a transaction was affordable. The trustee, Standard Life, and their advisors worked to prime the Scheme’s assets for sale, which allowed the trustee to obtain member benefits quickly.

Standard Life senior business development manager Rhian Littlewood says: “We have worked closely with the Trustee for over two years to monitor the Scheme’s funding position and strategy for managing the sale of the Scheme’s illiquid asset holdings. Working closely with the Scheme’s advisers to agree contractual terms in advance meant the Scheme was well positioned to move quickly on a transaction when the time was right. This collaborative approach ensured a smooth and efficient de-risking process for the Scheme, securing the liabilities for c. 1800 members.”

XPS risk settlement team partner and lead broker Ash Williams says: “We are really pleased to have led the Trustee through this transaction which brings together several years of hard work from all stakeholders and importantly secures pensions for the Scheme members with Standard Life. The collaborative and close partnership with Standard Life and the innovative execution structure agreed up front was effective and allowed the Trustee to take advantage of optimal market conditions and complete the transaction.”

Vector Pension Scheme chair of the trustee Stephen Smith: “We are delighted to have brought security to our members’ pensions via our policy with Standard Life. This was a complicated project that ran over several years and we thank XPS and Osborne Clarke for the clarity and expertise they brought in assisting us through the process. Standard Life have been an open and willing partner through the project, and we look forward to working closely with them in the future.”