The Finning Pension Scheme, backed by Finning (UK) Ltd, a Caterpillar machinery dealership, has finalized a £250 million bulk purchase annuity (BPA) transaction with Standard Life. The buy-in, completed in December 2024, covers all 2,170 members of the scheme.
The scheme’s trustees and sponsor collaborated closely with Standard Life to achieve their de-risking objectives through a competitive auction process. Aon served as the lead transaction adviser, with investment guidance from Hymans Robertson and legal counsel from Gowling WLG.
“We are pleased to have completed this transaction, which is a great outcome for our members,” said Ciaran McMenamin, chair of trustees. He noted that Standard Life was selected after a rigorous evaluation of seven insurers, with a key focus on its ability to work seamlessly with the scheme’s administration team while minimizing disruption to member services.
Alex Oakley, BPA transaction manager at Standard Life, highlighted the insurer’s commitment to meeting the scheme’s specific needs, ensuring a smooth and efficient de-risking process. “Insurers continue to play a crucial role in the highly active defined benefit (DB) de-risking market, and we remain focused on delivering tailored solutions that align with schemes’ long-term objectives,” he said.
James Staveley-Wadham, principal risk settlement consultant at Aon, emphasized the importance of maintaining a strong member experience post buy-in. “A key outcome for the trustee was ensuring that member services remained robust after the transaction. This is an area of growing importance for schemes considering insurance solutions,” he said.
The transaction marks another significant step in the pension de-risking market, reinforcing the role of insurers in providing long-term security for pension scheme members.