The Shoe Zone Pension Scheme has recently achieved a significant milestone with a £34 million buy-in, securing benefits for its members without requiring additional contributions from the sponsoring employer.
- This milestone marks the culmination of a series of de-risking transactions, ensuring the financial stability and future security of the pension scheme.
- Legal guidance for the transaction was provided by Freeths, with notable leadership from pensions director Nigel Jones.
- Rothesay will now oversee the liabilities of the pension scheme, covering both pensioners and deferred members.
- The transaction reflects an ambitious and forward-thinking approach to pension management, setting a precedent for similar organisations.
The Shoe Zone Pension Scheme has successfully completed a £34 million buy-in, effectively securing the benefits for its 500 uninsured members. This financial manoeuvre did not necessitate additional contributions from the sponsoring employer, which is a notable achievement in the current economic climate.
This strategic move is the final step in a series of de-risking transactions that began with Alico in 2008 and continued with MetLife in 2011. These actions collectively worked towards bolstering the scheme’s financial health and ensuring stability for all involved parties.
The intricate legal aspects of the buy-in were expertly handled by Freeths, a national law firm, with pensions director Nigel Jones taking the lead. Support was also provided by pensions director Maxwell Ballad, highlighting the comprehensive support structure in place during the transaction.
Rothesay, having acquired MetLife’s UK bulk annuity business in 2014, will now manage all scheme liabilities, including those of 367 pensioners and dependants and 166 deferred members. This ensures a robust framework is in place to safeguard the interests of these individuals.
Nigel Jones commented on the project, stating: “We are very pleased to have supported the trustee and scheme in its de-risking journey. The project was achieved in an ambitious timeframe and also ‘rolled up’ ancillary matters arising from earlier de-risking transactions to standardise terms and provide a clearer path to buyout.” His statement underscores the project’s ambitious nature and its success in addressing multifaceted issues.
This transaction serves as a landmark achievement in pension management, demonstrating a strategic and well-executed approach to securing member benefits.
