Manufacturing and research firm Oxford Instruments has completed a £213 million bulk purchase annuity (BPA) transaction for its pension scheme.
The Oxford Instruments Pension Scheme is a single-employer defined benefit corporate pension scheme.
The buy-in transaction, which was carried out by mutual life, pensions and investment provider Royal London, covers more than 1,600 members and secures their benefits.
Aon acted as the risk transfer adviser and scheme actuary to the trustee, while Norton Rose Fulbright provided legal advice throughout the buy-in. The team was led by Lesley Browning, head of UK pensions, with further support from counsels Giannis Waymouth and Graeme Tricker.
Schroders provided investment advice, with secretariat and governance support from the Independent Governance Group. Royal London was advised by Mayer Brown.
Steve Warren, chair of trustees for the Oxford Instruments pension scheme, said: “The trustee is delighted to have secured our members’ benefits via the bulk annuity policy with Royal London, achieving a fantastic outcome for the scheme, the sponsor and its members. Many thanks to Royal London and our advisers for helping us to achieve this significant milestone.”
Baljit Khatra, BPA origination lead at Royal London, added: “We understand that our differentiated proposition as a mutual was a key deciding factor in what was a highly competitive process. It was fantastic working with the trustee and their advisers, and we’re committed to delivering with pace and proactivity as we support them and their members with a seamless, high-quality experience over the long-term.”
Leah Evans, risk settlement partner at Aon, said: “The focused preparation work carried out on member data, asset alignment and transaction decision making resulted in very strong insurer interest and ultimately culminated in a full scheme bulk annuity transaction that was secured on attractive terms for the scheme and its members. It was a pleasure working with the trustee, Oxford Instruments, Royal London and the other advisers throughout.”
