De La Rue Pension Scheme completes £320m buy-in with Scottish Widows

The De La Rue Pension Scheme (the “Scheme”), sponsored by De La Rue plc has completed its first pensioner buy-in of £320m with Scottish Widows, covering the liabilities for approximately 1,400 pensioner members.

The buy-in represents a significant step in the Scheme’s de-risking journey, helping the Trustee improve the security of members’ benefits and to reduce the risk to the sponsoring company, De La Rue plc.

Hymans Robertson was the lead transaction adviser, with legal advice to the Trustee provided by CMS. De La Rue plc was advised by PwC and Slaughter and May, with Scottish Widows being advised by Pinsent Masons.

Mike Roberts, Partner at PAN Trustees and Professional Trustee Chairman of the Scheme commented:

“We are delighted to have completed this bulk annuity transaction with Scottish Widows. This buy-in is a major step in the Scheme’s de-risking strategy and significantly improves the security of all members’ benefits. Our advisers, together with the support and collaboration of De La Rue and their advisers, were instrumental in delivering this result for the Scheme, and we valued Scottish Widows’ willingness to work in partnership with us to meet our objectives for the project.”

Richard Wellard, Partner at Hymans Robertson commented:

“We are very pleased to have helped the Trustee successfully secure their first buy-in and take this substantial step on their journey. We worked closely with the Trustee to clearly define their de-risking strategy and identify an opportune time to approach the bulk annuity market. The result was a highly competitive broking process, with Scottish Widows presenting a compelling and tailored proposition.”

Lara Desay, Partner and Risk Transfer Specialist at Hymans Robertson commented:

“We are extremely happy to have been chosen by the Trustee to complete the Scheme’s first buy-in transaction, marking a material step in their de-risking journey and providing increased security to their members. Working in partnership with the Trustee and our respective advisers and to a clearly defined timetable, we were able to complete this transaction around 4 weeks after being awarded exclusivity. We look forward to becoming a long-term partner of the Scheme.”