Standard Life, a division of Phoenix Group, has concluded a £300 million bulk purchase annuity agreement with Unisys Public Sector Pension Scheme (UPSPS) and iPSL Section of Unisys Payment Services Limited Pension Scheme (iPSL) to provide benefits for 2,400 participants.
The acquisition was completed in November 2023 after an early 2023 market broking exercise. When affordability was reached later in the year, the Trustee worked with Standard Life to manage jobs.
The primary transaction adviser was Mercer, while the legal counsel was given by Gowling WLG.
Standard Life senior business development manager Kieran Mistry says: “It was a pleasure to work collaboratively with the Trustee and their advisers over recent months to achieve this fantastic outcome. The co-operation and engagement of all parties was exceptional, facilitating these buy-ins on accelerated timelines, and re-enforcing the importance of being adaptable and agile.
“This transaction demonstrates the value of close partnerships between schemes and insurers, following the blueprint we have developed with a number of schemes over recent years. Processes like this benefit from focus, attention and preparation of all parties to identify and capture opportunities which would otherwise be missed in a conventional market broking process.”
Independent Governance Group trustee director and Trustee for the Schemes chair Hetal Kotecha says:“The Trustee are very pleased to have secured these buy-in policies, significantly reducing risk and maintaining the security of our members’ benefits. This milestone step is the culmination of a wider journey of de-risking for the Schemes with the support of the sponsoring employers. We are grateful to Standard Life and our advisers for their collaboration and energy in securing this opportunity, working effectively with the Trustee and sponsors to execute quickly.”
Mercer risk transfer partner Ben Stone says: “This is a great outcome for the Schemes, ensuring member benefit security against the backdrop of a record year in the bulk annuity market. We were pleased to be able to leverage our excellent relationship with Standard Life to achieve the Trustee’s objectives, using our expertise and the groundwork developed over time to mobilise swiftly once the opportunity presented itself.”
