First Actuarial advises on £12m buy-in of higher education pension scheme

First Actuarial has advised on the £12 million buy-in of a higher education pension scheme. The move secures member benefits with insurer Just Group.

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First Actuarial and insurer Just Group have helped an arts-based higher education institution secure the pension benefits of 155 pensioners and deferred members in a £12m transaction. First Actuarial, a Gallagher Company, provided risk transfer consultancy, project management and investment services, working with Capital Cranfield, the sole professional trustee, and Arc Pensions Law.

Jacqueline Woods, a trustee at Capital Cranfield, explained, “The sponsor was keen to capitalise on the Scheme’s rising funding level. But although it initially seemed to be a straightforward transaction, a number of pension benefit complexities soon arose.”

Together, First Actuarial and Just Group found a pragmatic way to accommodate the unique benefit features within the Scheme rules and the insurer’s own processes, while coordinating with Isio, the Scheme administrator.

Declan Keohane, head of risk transfer at First Actuarial, commented, “The scheme’s unique characteristics required detailed preparation work and a tailored approach. They also called for proactive coordination and robust project management, carried out by First Actuarial risk transfer consultant, Oliver Nicholls.”

As a result of the transaction, members’ payments are now backed by the buy-in insurance policy with Just, and the institution has transferred its pension risks.

Alma Goyanes-Payne, deal manager at Just Group, added, “Just is able to help schemes of all types and sizes to secure their members’ benefits. This transaction illustrates how even small schemes with complex needs can achieve their de-risking objectives and ensure an excellent member experience. A combination of effective pricing via Beacon, our market-leading price monitoring and bulk quotation service, and excellent collaboration across all parties, helped the transaction progress smoothly.”

Keohane concluded, “The positive outcome highlights the value of close collaboration between trustees, sponsors, the risk transfer consultant and insurers in developing solutions that reflect individual scheme circumstances.”