LawDeb Pension Trustees conclude buy-in of its Tate Lyle Amylum UK Pension Schemes liabilities
07 November 2013
7 November 2013 – LawDeb Pension Trustees conclude a pension insurance buy-in of its Tate & Lyle Amylum UK Pension Scheme’s liabilities with specialist provider of insurance solutions Pension Insurance Corporation (PIC). The transaction covers £82 million of liabilities and more than 600 members. KPMG advised the Trustee and the Sponsor.
We had been looking at how we might move to full buy-in for a while, but volatility in the markets and the effect of low gilt yields had seemed to put this transaction on hold. However, the PIC team was proactive in suggesting how we might be able to take advantage of the recent, more favourable, market conditions. We were delighted to have been able to lock into terms with PIC with the help of our advisors
- Michael Chatterton, of Law Debenture which acts as the Scheme’s Sole Trustee.
KPMG Director Ben Bramhall said: “This transaction became possible through improved market conditions which meant that pricing was better than the Scheme's expectations, as a result of having sourced attractive assets. Moving quickly and minimising execution risk was crucial in taking advantage of this opportunity.”
Steve Amor, Head of Group Pensions at Tate & Lyle, said: “PIC was proactive in helping the Company understand that the buy-in deficit may have halved due to favourable market movements. We appointed KPMG to investigate the opportunity further and they were able to complete their analysis of the pricing, drive further savings and complete the transaction within five weeks from a standing start. The Company is very pleased to have removed the risk within the Scheme at a cost which is less than the contributions that were planned over the next eight years.”
Mitul Magudia, Actuary, at PIC, said: “We are pleased to have been able to help the Trustee secure its liabilities in this transaction, which hinged on helping the Trustee crystallise the gains it have seen in its funding levels. The Trustee and Company together with their advisers had prepared well for a transaction and therefore could move quickly to lock in favourable pricing when this was available.”
Law Debenture is a leading provider of independent professional trustee services to the financial markets and pension schemes. The company has been in business for over 100 years and has been providing pensions trustee services for over 30.
LawDeb Pension Trustees acts as a trustee for over 200 pension schemes with over 2 million members and £150bn in assets. Of these, more than 100 each have less than 500 members. There is no minimum size to the schemes. Our smallest scheme is £1.5 million. The trustee team acts for DB and DC schemes, registered and unregistered schemes, on-going schemes and schemes that are closed or being wound up. We are trustee to schemes for many quoted and unquoted employers. Each member of our team has experience of chairing trustee boards.