• The buy-in covers the benefits of around 6,600 pensioner members;
• The transaction removes risks associated with the Fund's liabilities; and
• The buy-in policy was purchased by the Fund's Trustee as part of a de-risking strategy.
International legal practice Osborne Clarke has advised Imperial Tobacco Pension Trustees Limited (the "Trustee") on the legal aspects of the completion of a £1.8bn bulk purchase annuity transaction with Standard Life, covering around 6,600 pensioner members of the Imperial Tobacco Pension Fund (the "Fund").
This is the first bulk annuity transaction completed by the Fund. Hymans Robertson acted as lead advisers to the Trustee on this transaction, and the Trustee also received funding and investment advice from Willis Towers Watson and Isio respectively.
Client Partner for the Fund, Paul Matthews, said: "We are delighted to have supported our longstanding client, the Trustee, in completing its first bulk annuity transaction with Standard Life. This buy-in is a major step on the Fund’s de-risking strategy and significantly improves the security of members’ benefits. It was also great to see such close collaboration between all interested parties and their advisers on this significant transaction in the pensions risk transfer market."
Partners Paul Matthews and Brent Wright advised the Trustee on this transaction, with support from Associate Directors Rebecca Cantrell and James Saddler in their pensions team. Senior Associate Jas Singh and Associate Director Eleanor Williams advised the Trustee on data protection matters, and Associate Director Nick Haywood provided advice on employment matters.