£65m bulk annuity deal between Just Retirement and Amey OS Scheme Trustees announced

Published at 09:52 AM on 19 August 2016

A £65m funding deal for one of the defined benefit pension schemes sponsored by engineering and public services firm Amey has been completed, PwC announces today. 

PwC, as advisors to Amey, led the process with the Trustee PTL (Pitmans Trustees Limited) following a rigorous and competitive tender exercise. The Trustee purchased two separate buy-in policies with Just Retirement Limited, a life insurance company of JRP Group plc, covering pension benefits for 1,000 scheme members. Prices were fully protected against market activity during the EU Referendum period with both transactions completed five weeks after receiving initial prices from a panel of insurers. 

The buy-in pricing opportunity was clearly and quickly identified using PwC’s online pensions analytics tool Skyval, which allows for insurers to provide initial scheme-specific pricing within a matter of days. 

Ben Stone, pensions consulting director at PwC, said:  

“We are delighted to have advised Amey in completing buy-in transactions for pensioner members of the Amey OS Scheme. The transaction opportunity was spotted quickly using our market-leading price discovery tool, Skyval Insure, and our client then set us a challenge to ensure the two buy-ins were completed without market movements taking the project off-track. We worked with Just Retirement and the Trustee to agree a mechanism whereby the scheme assets were fully matched to the buy-in price movements during the five week period from initial insurer quotations to deal completion. This was a significant achievement for the scheme – particularly given the large fluctuations in investment markets during that period.” 

Tim Coulson, Just Retirement director of DB Solutions, said:  

“We are delighted to have concluded this transaction with the Trustee of the Amey OS Pension Scheme, particularly in such an efficient manner and during a period of very volatile market movements. It is a testament to PwC, the Trustee and the team at Just Retirement that we were able to hedge the market movement during the EU referendum.” 

Kim Nash of PTL, Sole Trustee, said:  

“PTL were pleased to play a part in the successful buy-in for the Amey OS Scheme. These types of transaction are complex and need careful management to ensure advice is received in a timely manner to carry out the exercise efficiently. We believe our role as sole professional trustee ensured we could react quickly to the company’s initiative for a buy-in and achieve an agreed hedging mechanism ahead of the EU Referendum.” 

Andrew Devlin, Amey’s Pensions director, said:  

“Amey and its parent company, Ferrovial, has established a joint Pensions Risk Management Group to ensure first-class governance of Amey’s UK pension schemes, whilst mitigating pension risk to the business. One goal was to identify and implement measures to actively manage longevity risk. It is therefore highly satisfying to have quickly taken steps to deliver on this objective, whilst at the same time addressing other major pension risks. Amey is most grateful to the Trustee and its advisers for their positive response to the company’s initiative and their proficiency in highly challenging circumstances. We thank PwC for their advice, creativity and support throughout the process.”  

Ends 

Notes to editors 

1. Ben Stone is available for further comment. For more information contact Felix Ampofo on 020 7213 3646 or [email protected]  

2. For further information from Just Retirement please contact: Stephen Lowe, Group Communications director - 0173 782 7301 – [email protected]

Lee Blackwell, Head of PR - 02076182744 / 07834329615 – [email protected]  

3. PTL were advised by Quattro Pensions, SEI and Squire Patton Boggs 

About Skyval  

Skyval is a pensions platform which trustees, sponsors and all advisers can use for their pension scheme, as a single and confidential tool for their scheme-specific funding, investment, analytics and benchmarking requirements. The Skyval suite of modules includes Skyval Dashboard, Skyval Choice, Skyval Monitor, Skyval Optimiser, Skyval Accounting and Skyval Insure. Skyval helps pension schemes reduce costs, manage risks and make better decisions faster. Visit www.skyval.com, follow @SkyvalOnline or connect to us on LinkedIn

Skyval Insure provides schemes with quick and cost effective access to initial scheme-specific insurance pricing from across the buyout market. Since launch in 2014, Skyval Insure has been used to price or execute multiple deals totalling £4bn, including the £675m full buyout of the Lehman Brothers Pension Scheme announced in May 2015. 

About JRP Group 

JRP Group plc is a FTSE-listed specialist UK financial services company created by the merger of Just Retirement Group and Partnership Assurance Group.  

A leader in the defined benefit de-risking, individual retirement income, lifetime mortgages and care markets , JRP has been trusted to manage over £15 billion of customers’ retirement savings and has helped customers release over £3.5 billion from their properties.  

JRP provides the following wide range of products, advice and professional services to individual customers, financial intermediaries, corporate clients and pension scheme trustees: 

Marketed Products: 

· De-risking solutions for pension scheme trustees who want to remove the financial uncertainty of operating defined benefit pension schemes; 

· Individually underwritten retirement income products delivering a guaranteed income for life and flexible pension plans offering customers the options to blend secured and unsecured income; 

· Long term care plans that provide those people moving into residential care with peace of mind by knowing a regular payment will be made to the care provider for the rest of their life;  

· Lifetime mortgages for people who want to safely release some of the value from their home; and 

· Protection for people who may find it hard to purchase these products due to health conditions, lifestyle or other risk factors.  

Professional services: 

· Regulated financial advice and guidance services for individuals wanting help in using their pension savings and/or releasing some of the value from their home; and 

· A range of business services tailored for our corporate clients, ranging from consultancy and software development to fully outsourced customer service delivery and marketing services. 

Developed through the use of its specialist underwriting systems, JRP boasts unrivalled intellectual property (“IP”) which provides it with competitive advantage in the markets in which it operates. We utilise this IP, alongside a capital efficient business model, to develop products and services to provide customers with better outcomes and to drive profitable growth.  

The companies within JRP Group are authorised and regulated in the United Kingdom by the Financial Conduct Authority and/or the Prudential Regulation Authority. 

About PTL 

PTL is a top five independent trustee firm with offices in London, Leeds, Reading and Birmingham. 

PTL acts as an independent trustee and provides a range of governance services, predominantly to occupational pension schemes, including trust based defined benefit and defined contribution schemes, and contract based pension schemes including group personal pension plans. PTL also provides a range of governance services to other non-pension trusts. 

PTL is a member of the Pensions and Lifetime Savings Association, the Association of Corporate Trustees and the PMI Independent Trustee Group.  

More information can be found on our website - www.ptluk.com


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