Panasonic UK has completed a £140 million bulk purchase annuity (BPA) buy-in transaction for members of its defined benefit (DB) pension plan.
The consumer and business-related electronics products supplier carried out the transaction with Prudential Assurance, M and G’s wholly-owned subsidiary that provides life and pensions services.
It has secured the pension benefits of around 650 scheme members.
Consultancy LCP acted as the lead transaction adviser for the plan, as well as scheme actuary and investment adviser. Gowling WLG provided legal advice to the trustees on the contractual terms and Squire Paton Boggs provided legal advice to the trustees on the benefits being insured.
Lisa Mundy, professional trustee at BESTrustees, said: “The trustee’s number one priority was to secure the long-term pension benefits of our members. With the strong support of Panasonic and the guidance of LCP, we are pleased to say that we have achieved just that.”
Rosie Fantom, head of bulk annuity origination and execution at M and G, added: “We’re pleased to have worked with the trustees of the Panasonic UK Pension Plan to deliver a solution tailored to the plan’s needs, securing the benefits of around 650 scheme members. The transaction benefitted from having pre-agreed terms in place under LCP’s streamlined buy-in service which allowed us to execute the transaction in just over three weeks after agreeing exclusivity.”
Peter Rawson, partner at LCP, said: “This transaction demonstrates that, when a scheme is well-prepared and there is strong collaboration with the sponsor, trustees can act quickly to take advantage of market opportunities. The trustees were able to run an expedited process securing strong terms, while still undertaking a thorough selection and due diligence process.”
