An unnamed pension scheme has completed a £361 million (C$672 million) full scheme buy-in transaction with Canada Life, covering over 850 deferred members and approximately 650 pensioners.
According to Canada Life, this is its largest single deal to date, including deferred lives.
Mercer was the lead broker and the Trustees’ de-risking and investment adviser. CMS provided legal counsel to the Trustees throughout the process. Capita was the scheme’s actuarial adviser and administrator. Eversheds Sutherland advised Canada Life, while Sackers advised the employer.
Commenting on the event, Shreyas Sridhar, business development director, Bulk Purchase Annuities at Canada Life, stated that completing the transaction was a milestone for the company and demonstrated its ability to manage complex schemes involving both deferred members and pensioners.
“This was a highly competitive tender process, and we are delighted that the Trustees chose Canada Life to insure the benefits of its members,” Sridhar said. “By working with the Trustees and advisers, and building on the scheme’s strong funding position, we helped to secure improved benefits for the members that will enhance their financial security in retirement. We look forward to continuing the momentum that we have worked hard to build into 2025 and beyond.”
Andrew Pugh, risk transfer principal at Mercer, described the buy-in as the conclusion of the scheme’s de-risking process, ensuring all members’ benefits were secured along with agreed augmentations requested by the Trustees.
“Mercer has advised this scheme for a considerable period of time on reducing investment risk and we undertook a clear and streamlined broking process which resulted in a large amount of interest from insurers, and, ultimately, a positive outcome for the Trustees, members and the sponsoring company,” Pugh added.
Meanwhile, Natalie Mee, partner at CMS acknowledged the collaborative effort of the Trustees, advisers, and teams from CMS and Canada Life in finalizing the deal, which she described as an important step for the Trustees and the scheme.
“This deal marks an important milestone for the Trustees and the scheme. We are proud to have played a role in securing a positive outcome for the members,” Mee said.
