The trustee of the G4S Pension Scheme has completed a £1.8bn full buy-in with Just Group, covering the benefits of around 22,500 members.

Following recent improvements in the defined benefit (DB) scheme's funding levels, the trustee and company were able to "accelerate" their plans to de-risk the scheme, approaching the market jointly and working collaboratively to secure an attractive outcome for members.

In particular, a key focus for the trustee was to enhance the long-term security of members’ benefits and ensure good member experience.

In line with this, the trustee said it undertook a "bespoke, careful due diligence process", with Just Group selected following a highly competitive and rigorous selection process.

The trustee was advised throughout the process by Aon, while LCP provided advice to the sponsoring company. Cardano acted as covenant adviser and fiduciary manager.

Legal advice, meanwhile, was provided by Gowling WLG to the trustee, by Freshfields to the company and by CMS to Just Group.

The deal was highlighted as the the largest publicly announced deal in the bulk purchase annuity market this year so far, in line with previous industry estimates, which suggested that the second half of the year could see an increasing number of larger transactions.

Commenting on the deal, trustee chair at Capital Cranfield, Allan Course, said: “Our focus has always been on ensuring that the promises made to our members are kept, and this buy-in allows us to safeguard those commitments with confidence.

"With thanks to Aon, who skilfully led the process, navigating through the market to reach our goal. The buy-in with Just not only enhances the security for members, but also ensures they receive the care and service they deserve.

"It has been a tremendous effort from all advisers involved, with special thanks to the Aon, Cardano, Gowling and Capita teams in supporting the Trustee through the process."

Adding to this, executive chairman at G4S, Ashley Almanza, said: "Supporting the members of the pension schemes has always been a key priority for G4S Limited and the company has paid very material contributions into the schemes, on behalf of members, over many years.

"It is extremely pleasing to have worked in close collaboration with the trustees to agree a major buy-in that secures the position of the pension scheme members.”

Managing director, defined benefit (DB) solutions at Just Group, Pretty Sagoo, also highlighted the deal as the "culmination of a rigorous selection process", emphasising that there is still a "vibrant insurance de-risking market for schemes of all sizes".

"We are delighted to have been selected by the trustee to secure the scheme members’ benefits, and we look forward to providing a brilliant member experience for years to come," Sagoo continued.

"There is a vibrant insurance de-risking market for schemes of all sizes and Just are delivering outstanding service to small schemes, large schemes and everything in between."

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