A £13m full scheme buy-in has been agreed between Legal & General (L&G) Assurance Society Limited and the Jarvis Limited Pension Plan.

The deal will secure the benefits of more than 90 members, including 72 retirees, with a price-tracking formula used by L&G to provide certainty to the plan while the terms were agreed.

K3 Advisory advised the trustees on the transaction and Shoosmiths provided legal advice.

The deal marks the first bulk annuity transaction for the scheme, which has been partnered with L&G's investment management business for more than 23 years.

The scheme's trustees will now work with L&G towards its target of reaching buyout within agreed timeframes.

The sponsoring company, Jarvis Group Limited, is a construction business that specialises in contracting services, homebuilding, and maintenance.

Jarvis Limited Pension Plan trustee, Simon Lawrence, said that it was important for the scheme to secure the best outcome for members as well as being able to work with a team of providers who were able to work efficiently and collaboratively to get the scheme to where it need to be.

"We have not only secured the benefits of our 90 members, but we are in a very a strong position to achieve our target objective to buyout," he continued.

L&G Retirement Institutional actuarial manager, Matthew Dales, added: “This transaction, which provides security for the retirements of more than 90 people, is the product of strong collaboration and clear communication among the trustees, their advisors and us.

“Our innovative price-tracking solution helped provide certainty to the trustees while we agreed the terms of the transaction, and we are now well-placed to help the plan towards its objective of buyout.”

K3 managing director, Adam Davis, also stressed the importance of diligent preparation in getting the scheme transaction ready, explaining this allow trustees full advantage of favourable market conditions as they happen, trading at the optimum time for their scheme.

"Working closely with all concerned and sharing expertise meant we were able to achieve this great success for the Jarvis pension plan," he stated.


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

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