UK roundup: Scheme for aerospace group in £160m buy-in

first_imgSanlam selects PTL to oversee investment pathwaysSanlam UK has selected PTL, an independent trustee and governance services provider, to assess the value for money of its new investment pathway solutions for non-advised pension drawdown clients, and their workplace pension scheme, trhoguh its governance advisory arrangement (GAA).Keith Lewis, client director and chair of the PTL GAA, said: “PTL now has a five-year track record of value for money assessment, based on a robust and comprehensive framework.”Following the Financial Conduct Authority’s (FCA) recent policy statement, PTL has updated its methodology and terms of reference to reflect the extended remit over investment pathways, and also the need to assess environmental, social and governance factors, he said.Nick Parry, chief executive officer of Sanlam Investments & Pensions, said: “We fully support the spirit of the new regulations, and welcome the opportunity to offer our existing clients enhanced solutions that will help to deliver better outcomes.”Launched in 2015, the PTL GAA follows two FCA mandates that providers of drawdown solutions to non-advised customers create four investment pathways, and that the value for money of these pathways is assessed by an independent governance committee or GAA. The Leonardo Electronics Pension Scheme, the fund for the electronics division of the aerospace, defence and security company, has completed a £160m (€180m) buy-in deal with Just Group; Aon advised the scheme trustees.This is the first buy-in for the scheme in a move to reduce risk while still offering accrual of new benefits to active employees, Aon said.The deal covered all pensioners in the company’s £1bn UK pension scheme for its electronics, defence and security systems division with non-trivial annual pensions – 1,253 in total.Mike Nixon, head of pensions at Leonardo UK, said: “It’s great news that we have secured the benefits of our pensioners with Just Group and that we were able to complete the transaction despite the turbulence in markets.” He said the scheme is still open to accrual, but its strong funding position meant ”we have been able to lock down this risk at an early stage”.Michael Walker, principal consultant at Aon, said: “This complex deal started in late 2019 when markets were stable and completed in late March at an especially testing time in the financial markets.”Just Group has recently completed two other buy-in deals with the pension scheme for NG Bailey, an engineering group.last_img

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