The Pension and Life Assurance Plan for Non-Teaching Staff of Oundle School, Peterborough, England, completed a £5 million ($7.7 million) bulk annuity transaction with Canada Life.
The deal, which covers around 150 members of the pension fund, was brokered by JLT Employee Benefits, which also advised the trustees of the pension fund. Dave Barratt, senior buyout consultant at JLT Employee Benefits, said the transaction covers 40% of total liabilities. The deal is the first bulk annuity deal for Canada Life, which provides services for retiree-only transactions, said a statement from JLT.
The pension fund has £11 million of assets.
The retiree buyout was made alongside a lump-sum offer to participants with small pension benefits, known as a “trivial commutation exercise.”
“This is a very interesting time for the smaller end of the bulk annuity market,” Mr. Barratt said in the statement. “As more insurers enter the market, smaller schemes will have greater access to derisking transactions.”