Canada Life UK has secured the future benefits of 4,500 members of the Comet Pension Scheme through a £330 million full-scheme buy-in.
The scheme’s sponsor, part of the European retail group Fnac Darty, originally formed the scheme in 2004 and integrated it in 2016.
LCP advised the sponsor with XPS supporting the Trustee, while Eversheds Sutherland, Macfarlanes and CMS provided legal advice.
Canada Life UK managing director, bulk purchase annuities Shreyas Sridhar says: “I am delighted that Canada Life UK has been selected by the Comet Pension Scheme Trustees and Fnac Darty as the Scheme’s pensions derisking partner, and I thank them for the full confidence they have in the strength and expertise of Canada Life UK and our global parent Great West-Lifeco to deliver a gold standard customer experience for their members.
“This transaction is a great demonstration of what can be achieved through collaboration, and how focused planning by all the parties involved can deliver positive long-term benefits for scheme members.”
Chair of the Scheme Trustees Ian Edwards says: “The Trustee is pleased to have concluded a collaborative process with our sponsor and Fnac Darty, that has enabled us to take advantage of our improved funding level to complete this successful buy-in transaction with Canada Life, which will provide long term security for our members’ benefits.”
Fnac Darty chief financial officer Jean-Brieuc Le-Tinier says: “This agreement with the UK pension Trustee represents a significant step in our long-term strategy. Working closely with the Trustee, we have covered this risk without impacting the Group’s cash position and secured members’ benefits with a leading insurer. We are pleased to have completed this transaction in favourable market conditions.”
LCP partner and lead risk transfer adviser Charlie Finch says: “I am pleased to have helped the Scheme reach this major milestone providing cost certainty for Fnac Darty and long-term security for the former employees of Comet. This was a highly competitive broking process – a consistent pattern we have seen in the run-up to the year end and we expect to continue into next year offering opportunities for sponsors to de-risk their DB pension schemes.”
