Veitchi (Holdings) Limited Retirement Benefits Scheme has completed an £8 million full buy-in for members of its pension scheme.
The specialist service provider to the construction industry worked with Just Group to secure the benefits of the remaining 82 people who were uninsured, including 31 pensioners and 51 deferred members.
The Glasgow-based business, which has a 100-year history, completed the deal in a bid to provide the funds to secure the £8m of liabilities as soon as it was financially able to do so.
Allan Martin, ACMCA Limited, independent chair of trustees, said: “An offer from the sponsor to contribute the buy-out shortfall and thereby insuring all members’ benefits has to be in their best interests. We grasped the opportunity and it was something we had to act quickly on to achieve.
“We worked closely with the sponsor, Just and our advisers to make the most of the funding position and obtain a price that was affordable. This required real co-ordination across all parties to get everything completed and some innovative thinking to deal with less liquid assets.”
The transaction is the scheme’s second and will now continue to full buy-out and wind-up.
Harriet Fallows, business development at Just Group, commented: “We are committed to working with schemes of all sizes and we are delighted to have been selected by the Trustees of the Veitchi (Holdings) Limited Retirement Benefits Scheme for this mandate.”
The trustees received annuity broking and long running actuarial and administrative assistance from Broadstone, while legal advice was provided by MacRoberts LLP and ISIO supplied similar investment consulting support.”
Christopher Rice, head of trustee services at Broadstone, added: “When the sponsor approached the trustees confirming it could fund the buy-out shortfall within reasonable levels, we did everything in our power to make the transaction happen.
“I’m really pleased that we could work closely with Just Group and the other advisers to achieve the transaction at a price that the sponsor could afford.”
Martin concluded: “I’m delighted we managed to complete the deal and look forward to working with Just, MacRoberts, ISIO and Broadstone to wind up the scheme.