Standard Life in £680m buy-in at Whitbread pension

Phoenix Group's offices in Lothian Road, Edinburgh

Standard Life, part of Phoenix Group, said it has concluded a £680 million Bulk Purchase Annuity (BPA) transaction covering 8,000 members of the Whitbread Group Pension Fund.

“The transaction is the first by the Trustee, significantly reducing the risks associated with the underlying members’ benefits,” said Standard Life.

“WTW acted as the lead advisers for this transaction, while legal advice was provided by Reed Smith.”

Kieran Mistry, senior business development manager at Standard Life, said: “It’s exciting to support the Trustee in securing their first buy-in, taking risk off the table in a volatile economic environment.

“We thoroughly enjoyed working closely and collaboratively with the Trustee and its advisers to secure this transaction.

“We look forward to partnering with the fund on its journey.

“For schemes who have not yet reached buyout, pensioner buy-ins continue to offer a fantastic opportunity to lock down risk over time, and form strategic partnerships with insurers along the way.”

Whitbread Pension Trustees chair Keith Jones said: “This buy-in is a key stage in the fund’s de-risking journey.

“It helps to provide greater certainty to members about the security of their benefits and we are delighted to have completed it with Standard Life.”

Whitbread PLC was advised by LCP and Slaughter and May.

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