Wragge & Co’s pensions team has advised the trustee of engineering group Delta’s pension scheme on a £451 million deal.
In one of the largest such deals on record, Pension Insurance Corporation (PIC) will take on financial responsibility for the majority of pensioner benefits under the plan.
Under the transaction, the pensioner liabilities will be insured with PIC in exchange for asset transfers from the fund of about £400 million and a cash payment funded by Delta of £49.7 million.
The plan has 10,000 retired members and a total fund of over £600 million.
Partner Jason Coates said: “This transaction is good news for all members of the Delta Pension Plan, whether pensioners or not.
“With this deal and our work on last year’s ground-breaking Emap pensions buyout, we are establishing a reputation as one of the leading teams for innovative advice and solutions in respect of liability management.”
Jason Coates led a Wragge & Co team, which comprised partner Paul Feathers, associate Ben Blunsdon and solicitor Amy Aldridge. They worked with David Pearce and the trustee’s lead adviser, Darren Redmayne from Lincoln International. Robert Birmingham, the plan’s actuary from Xafinity Limited, and Mike Smaje, the plan’s investment adviser, also supported the trustee.
It was the latest, large-scale pension buyout the team has successfully completed. Last year its experts advised the trustees of Emap’s defined benefit pension schemes on a buyout deal with Paternoster.
Delta is an international engineering company, whose businesses include engineered steel products, galvanizing services and manganese materials.