Just Group secures £56m full-scheme buy-in for Brother Staff Pension Scheme

Just Group has completed a £56 million full-scheme buy-in with the Brother Staff Retirement Benefits Scheme, securing the benefits of all 679 Scheme members, comprising 299 pensioners and dependents, as well as 380 deferred members.

The scheme is sponsored by Brother International Europe Limited and Brother UK Limited, part of the Brother Group, a Japanese-based manufacturer of technology solutions.

Isio acted as lead broker on the transaction, with Just Group advised by Clifford Chance, the Trustees and Sponsor advised by Eversheds Sutherland and Fieldfisher respectively, and preparatory work by the Trustees supported by Gallagher, who also serve as administrator, Scheme Actuary, and investment adviser.

Ross Breckon, Business Development Manager at Just Group, commented, “This was a complex transaction, but we created certainty on price for the Scheme by providing an investible gilts-based price lock.

“Just’s enhanced technology for pricing was key to successful execution, in particular the ability to offer flexibility on member benefits, including updating to allow for GMP equalisation in a matter of days during exclusivity, which will enable a smoother and more efficient data cleanse.

“We are committed to delivering great outcomes for Schemes and providing excellent service to their members now and in the future.”

On behalf of the Trustees, Susan Anyan at Capital Cranfield, noted, ”We are very pleased that a strong partnership between the Trustees and the Sponsor has allowed us to successfully future-proof members’ benefits.

“A substantial cash contribution from the Sponsor, coupled with a robust broking process, meant that we were able to significantly accelerate our ambition of fully securing the Scheme’s liabilities.

“We look forward to partnering with Just to ensure that we continue to deliver high-quality services and benefits to our members.”

Russell Brown, Director of Finance, HR and Admin at Brother International Europe Limited, said, “Following a competitive bidding process we entered into an exclusivity period with Just, working alongside our advisers, the Trustees and their advisers to work through the finer details of the transaction.

“Following successful conclusion of that process, we are delighted to have completed the buy-in, securing the best possible benefits for the members and working with a partner committed to delivering long-term value to them, whilst also removing risk and volatility from our corporate balance sheet.”

Paul Greenall, Partner at Isio, commented: “This deal is a great example of being ‘transaction ready’ with effective collaboration between the Trustees, Sponsor and advisers. We work with a large range of Japanese corporates and were able to leverage this expertise across the entire process as part of the broking exercise. This has resulted in a great outcome for members, the Trustees and the Sponsor.”