Isio has completed its first ‘micro’ buy-in using its new service aimed at smaller DB schemes.
This deal has secured a £1.2m buy-in for the Godolphin Company Limited, sponsored by St Aubyn Estates, which covers eight deferred members.
It was completed using Isio’s new PenUltimate Micro framework – a fully bundled, end-to-end service designed to help schemes with fewer than 100 members get to buy-in, buyout and fully wound up within two years.
Following appointment, Isio undertook a comprehensive review of the DB plan’s position, applying its approach to data cleansing and preparation for buy-in, GMP equalisation, buy-out and wind-up.
The scheme’s administration, actuarial and investment services were transitioned to Isio and assets were de-risked, enabling the plan to move efficiently to secure a buy-in within seven months, with the plan expecting a surplus at wind-up.
Isio risk transfer specialist Christian Costi says: “Completing our first PenUltimate Micro transaction demonstrates how smaller schemes can access a structured and efficient route to risk settlement.
“Securing long-term security for members was at the heart of this process and, through focused preparation and early market engagement, we were able to help the trustees move from a legacy policy arrangement to a completed buy-in within a relatively short timeframe”
Alma Goyanes-Payne, business development manager at Just Group adds: “The smallest of schemes can still struggle to get engagement in the market, resulting in disproportionate fees and a lengthy data cleanse process despite low member numbers.
“Beacon enables us to price multiple small schemes within a short window for maximum efficiency ahead of signing, and we’ve developed a micro scheme specific process to ensure small schemes like this get to buy-out very efficiently. We’re proud to continue leading the way, including at the smaller end of the market and we look forward to working with Isio on future PenUltimate Micro deals.”
Felix St-Aubyn, sponsor CEO and trustee, adds: “Our small scheme had been facing increasing regulatory pressures and rising costs, with limited options to move forward.
“Isio brought clarity, professionalism, and a clear plan of action. Within seven months, we had successfully changed pension scheme administrators and completed a buy-in, significantly improving both service and security for our members. Their expertise and focused approach have transformed the outlook for the plan.”