Standard Life in £114m buy-in with Vector pension

Rhian Littlewood

Standard Life, part of Phoenix Group, has concluded a £114 million Bulk Purchase Annuity (BPA) transaction covering 1,800 members of the Vector Pension Scheme, which is sponsored by Vector Industries Limited.

“This is a full scheme bulk purchase annuity arrangement which completed in November 2023,” said Phoenix.

“XPS Pensions Group acted as the lead advisers to the Trustee for this transaction, while legal advice was provided by Osborne Clarke LLP.

“The Trustee of the Scheme worked with Standard Life over an extended period to monitor transaction affordability, alongside managing the scheme’s illiquid asset holdings.

“Standard Life, the Trustee, and their advisers completed significant preparation work such that once the scheme’s assets were transaction-ready, the Trustee was able to move quickly to secure member benefits.”

Standard Life senior business development manager Rhian Littlewood said: “We have worked closely with the Trustee for over two years to monitor the Scheme’s funding position and strategy for managing the sale of the scheme’s illiquid asset holdings.

“Working closely with the Scheme’s advisers to agree contractual terms in advance meant the Scheme was well positioned to move quickly on a transaction when the time was right.

“This collaborative approach ensured a smooth and efficient de-risking process for the scheme, securing the liabilities for c. 1800 members.”

Ash Williams, partner in the XPS Risk Settlement team and lead broker, said: “We are really pleased to have led the Trustee through this transaction which brings together several years of hard work from all stakeholders and importantly secures pensions for the scheme members with Standard Life.

“The collaborative and close partnership with Standard Life and the innovative execution structure agreed up front was effective and allowed the Trustee to take advantage of optimal market conditions and complete the transaction.”