Fujitsu General UK has entered into a full buy-in transaction worth £7.7 million with Aviva for its pension and life assurance plan.
The buy-in has secured defined benefit liabilities for all deferred plan members and their dependants, and is a “significant” step forward to ensure the long-term security of members’ benefits. It was carried out within the context of a new covenant and a security package has been put in place by the sponsoring group.
Law firm CMS provided legal advice to the trustee, while pension advisory business Isio acted as the actuarial and investment advisers.
The CMS team was led by Caroline Kurup and Simon Evans, and was supported by Megan Davies and Harriet Dammone on the pensions team. They were assisted by Timea Scholey and Ben Bodmer from restructuring and insolvency, Paula Hrycokowiak from banking and finance, and Axel Dippmann and Dieu Hong Mai in CMS Germany’s finance division.
According to CMS, it has advised on £18 billion worth of buy-in and buy-out transactions in 2020, which represents more than half of the total value of all transactions completed in that year.
Peter Thompson of Capital Cranfield, the sole trustee of the plan, commented that the team was “delighted” to be able to achieve this result for the beneficiaries of the plan.
“It is vital that it remains possible to carry out small transactions such as this as well as the large ones which gain most publicity. We are grateful that our advisers and Aviva have been able to support this transaction so effectively,” he said.
James Staveley-Wadham, who led the Isio team together with Nathan Butterworth and Priya Jassal, added: “We were pleased to support the trustee in the completion of this transaction and secure the best outcome for members. Our innovative approach to securing benefits with insurers is proving successful for both the smaller pension schemes and the larger deals we undertake for our clients.”