Marvin OnumonuJust Group has completed a £250m buy-in for the Ultra Electronics Pension Scheme, covering more than 1,750 members.
The scheme is backed by Ultra Electronics Limited, a UK defence and security company with operations in aerospace, maritime, cyber and communications.
The deal secures the benefits for over 1,000 pensioners and dependants as well as more than 750 deferred members.
The trustee, Ultra Electronics and advisers worked together with Just Group to reduce risk for the scheme and protect members’ benefits.
LCP was lead risk transfer adviser, Eversheds gave legal advice to the trustee, and XPS acted as scheme actuary.
Just Group had legal support from CMS.
Geraint Jones, senior BDM at Just Group, said: “We’re pleased to secure the pensions of over 1,750 Scheme members who, through our member support package, will continue to enjoy the benefits of the Pension Increase Exchange option and will have access to regulated financial advice.
“We enjoyed working closely with the Trustee and their advisers to deliver a bespoke asset lock solution that provided maximum certainty on affordability.
“This buy-in shows that the pension de-risking market continues to be dynamic and effective, supporting schemes of all sizes and with a variety of requirements.”
Natalie Winterfrost, trustee director at Law Debenture and chair of the trustee, said: “Security and service for our members has always been paramount and we are delighted to have secured our members’ pensions through a full buy-in with the Just Group.
“Just reassured the Trustee through every stage of a rigorous process with their ability to listen to and accommodate our particular requirements.
“It was testament to our preparatory work, and to the quality of the advice we received from LCP, Eversheds and XPS, that we found ourselves in a very competitively fought process, resulting in a great outcome for the Company as well as our members.”
Sven Lewis, CFO, Ultra Electronics UK Holdings Limited, said: “This announcement is very good news and ensures that the benefits of all the members of the Scheme have now been secured.
“Since the acquisition of the Ultra Electronics Group by Advent International over three years ago, we have had a clear plan to de-risk the pension scheme, which has included c.£75 million of cash investment from Ultra into the Scheme.
“The deal with Just completes that process and delivers long-term security for all our pension scheme members.”
Ricky Patel, partner at LCP, said: “It has been an honour to work with the Trustee and Company to structure and deliver this significant milestone for the benefit of members.
“Strong preparation was key to this transaction. Developing end-to-end solutions on all specifics in advance, combined with the right positioning of the Scheme’s complexities and clear asks of the insurers provided market confidence – this secured very high insurer engagement and ultimately attractive pricing and terms.
“We’re pleased that the transaction achieved the Trustee’s objectives in all key areas, including completeness of risk transfer, dovetailing the sale of illiquid assets and achieving a “perfect” asset lock to lock-in the economics which avoided asset trading and costs prior to execution.”
