Osborne Clarke advises on £280m buy-in

In a significant development in the pensions sector, international legal practice Osborne Clarke has successfully assisted the Trustee of the Grant Thornton Pensions Fund in completing a £280 million buy-in with Royal London. This transaction, representing Royal London's largest external Bulk Purchase Annuity (BPA) deal to date, involves more than 2,200 members who will transition to direct Royal London policyholders under a proposed buyout plan.

Jonathan Hazlett, head of pensions at Osborne Clarke, expressed satisfaction in his firm's involvement, saying “We were delighted to have supported the Trustee in this significant transaction. The Trustee has been a long-standing client for Osborne Clarke and so it's been really rewarding to have got to a position where members' benefits have been fully secured with Royal London.”

The deal reflects a thriving insurance marketplace, with Royal London being one of nine insurers that submitted proposals for the buy-in, showcasing a range of options available to pension scheme trustees and sponsors. Aon acted as the adviser to the Trustee and Grant Thornton, while Royal London was supported by DLA Piper. Actuarial and investment advice was provided by Barnett Waddingham and Cardano to ensure a well-rounded approach to the transaction.

Carl Williams, chair of the Trustee, highlighted the positive impact of the transaction on members, stating “This transaction is a fantastic outcome for our members. The legal advice provided by Osborne Clarke throughout meant that we made an informed decision as to which insurer to select and could weigh up all options including non-price factors.” He noted that the successful completion within a short timescale was due to the effective collaboration among all advisers and the Trustee.

Osborne Clarke's pensions team, recognised by legal directories such as the Legal 500 and Chambers UK, is well-versed in pensions law and risk transfer, recently advising the trustees of the Debenhams Retirement Scheme on a transfer to Clara Pensions Trust in 2023. This latest transaction exemplifies their expertise in securing members' benefits with insurance companies and navigating complex pension landscapes in the UK marketplace.