LCP advise the Trustees of the Brockhampton Pension Scheme on a c£40m full buy-in with Just

The Trustees of the Brockhampton Pension Scheme (“The Scheme”), in collaboration with Portsmouth Water Limited (“the Company”) and Just Group plc (“Just”) are delighted to announce that they have completed a c£40m full buy-in of all remaining uninsured liabilities of the Scheme covering broadly 250 members.

The transaction builds on an existing buy-in policy secured with Just in 2019 which covered all pensioner members at that time.

An interesting feature of the transaction was that Just agreed to provide pension increases in line with Pension Increase (Review) Orders (“PIROs”). This is a typical benefit for pension schemes sponsored by utility companies (and other former civil service schemes) but rarely used elsewhere. PIROs are published each year by the UK Government and are currently based on the Consumer Prices Index (“CPI”). Insuring PIRO increases means that the buy-in covers any potential change in approach from the UK Government compared to insuring CPI increases. 

Nicholas Roadnight, Chair of the Trustees of the Brockhampton Pension Scheme, said: “We are delighted to have secured this full buy-in, which represents a major milestone in our long-term journey to safeguard members’ benefits. Having completed a pensioner-only buy-in previously, this transaction builds on that strong foundation and gives us full coverage across all members. On behalf of the Trustee Board, I’d like to thank LCP for their expertise in guiding us through our journey, navigating complex problems in an efficient manner, and the sponsoring employer for their continued support in helping us deliver this excellent outcome for our members.”

David Stewart, Partner, LCP said: “At a time when recent discussion by commentators has been around simplifying benefits in pension schemes to make them more attractive to insurers, it is great to see that non-standard benefits can still be insured, even for smaller transactions. This gave the Trustees the peace of mind that they are insuring benefits exactly as required by their governing rules thereby protecting members.”

Geraint Jones, Senior Business Development Manager, Just Group said: “It was a pleasure to have partnered with the Trustees to secure the benefits of the remaining members of the Scheme. When the Trustee’s key requirements are securing non-standard benefits and enhanced contractual terms, this type of close partnership is an attractive option and provides room for flexibility and excellent outcomes for members, the Trustee and the Sponsor. This transaction demonstrates that the thriving insurance market can deliver solutions for schemes of all sizes, and with any type of complexity.”