London Waste has completed a £22 million bulk purchase annuity transaction for its pension scheme.
The transaction was completed with the trustees and UK mutual life, pensions and investment provider Royal London. The benefits of around 200 members of the scheme have now been insured.
The trustees were advised by financial advisory firm Hymans Robertson and law firm Squire Patton Boggs.
John Nestor, professional trustee at Capital Cranfield, said: “The former trustees and the employer, London Energy, are delighted to reach this milestone in the de-risking journey for the scheme. We were impressed by the cultural bond that the stakeholders set as the foundation in the discovery stage of the process. All stakeholders agreed on the mission, the part they would play and the resources they could provide in the delivery of the de-risking exercise.
“This has been a priority for the scheme and the employer. We believed that Royal London could provide a strong proposition to the trustee and all stakeholders, and this belief was matched by the solution delivered in a very efficient and competitive manner.”
Moin Patala, bulk purchase annuity origination lead at Royal London, added: “This transaction continues to demonstrate that we have a compelling bulk annuity offering for trustees and their members. The collaboration between London Waste Pension Scheme and our other stakeholders helped showcase real nimbleness, with the contract signed within three weeks of entering formal exclusivity.”
Iain Church, head of core transactions and risk transfer specialist at Hymans Robertson, said: “We’re delighted to have supported the trustee in delivering this successful buy-in, a key step in de-risking the scheme and enhancing member security. This outcome was made possible thanks to the agile and experienced decision-making of the sole trustee model, and the close collaboration and financial support from the sponsor.”
