The Cobham Pension Plan has completed a £530m buy-in with Standard Life, securing retirement benefits for around 3,000 members of the scheme.

The deal, which was completed in August, follows a previous £280m bulk annuity purchase with Rothesay Life in 2013, with the benefits of all scheme members now secured as a result.

LCP acted as the lead adviser to the trustee, with additional support from AR Pensions and Wellbeing Consulting, while legal advice was provided by Squire Patton Boggs and Sacker & Partners. Standard Life were advised by CMS.

Standard Life senior business development manager, Rhian Littlewood, highlighted the transaction as a "prime example" of how important it is for trustees to be adaptable and agile to take advantage of favourable market opportunities.

“Having initially approached the market looking to secure a pensioner only transaction, the Cobham Pension Plan trustees found themselves in a position where they were able to secure their liabilities in full," she continued.

"We worked closely with the trustees and their advisers to lock in security for all members of the plan.”

LCP partner, Gareth Davies, also emphasised the importance of "careful preparation and design of the insurance tender process" in securing competitive pricing, noting that the full insurance of the plan has been achieved "many years ahead of previous expectations".

Adding to this, Cobham Pension Plan trustee chair and Law Debenture director, Mike Jaffe, said: “We are delighted to have fully insured and safeguarded the benefits of all members of the Cobham Pension Plan.

"The trustees and Cobham, following its acquisition by Advent in 2020, have continued to work hard with their advisers to take further steps to de-risk the pension plan and to ensure members’ benefits are protected.

“This latest step, a bulk annuity purchase from Standard Life, fulfils that de-risking plan and means the pension plan is now immunised against the volatile economic market backdrop.”

Cobham Limited chief financial officer, Sven Lewis, added: “This announcement is very good news and ensures that the benefits of all the members of the plan have now been secured.

“Since Advent’s acquisition of Cobham nearly three years ago, we have had a clear plan to de-risk our pension scheme, which has included over £150m of increased cash investment from Advent into the plan.

“The deal with Standard Life completes that process and delivers long-term security for our pension fund members.”


This article first appeared on our sister title, Pensions Age.

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