Just Group completes £130 million transaction for the Lucite International UK Pension Fund

12 April 2024

Just Group has completed a £130 million buy-in for the Lucite International UK Pension Fund (“the Scheme”). The transaction was completed in March 2024.

The Scheme is sponsored by Mitsubishi Chemical UK Limited (“MC UK”) and this transaction secures the benefits of 438 uninsured members, including 156 pensioners and dependants and 282 deferred members. The transaction completes the buy-in of all Scheme liabilities.

WTW were the lead adviser to a joint working group for this transaction, as well as scheme actuary and investment adviser. Legal advice was provided to the Trustee by Squire Patton Boggs. Just Group received internal legal advice.

Just Group reported total Defined Benefit (DB) sales (including DB partner sales) in 2023 of £3.4bn, up 21% on the previous year. It completed 80 transactions which is estimated to be over one-in-three of all deals completed in the market in 2023, more than any other provider.

Martin Parker, Senior Business Development Manager at Just Group, said: “We’ve enjoyed working with the Scheme trustees and their advisers on this transaction and we’re particularly pleased that we have been recognised by the Trustee for providing a positive member experience. There is a vibrant insured de-risking market for schemes of all sizes and we are proud to have been entrusted to deliver the long-term financial security to members of the Lucite International UK Pension Fund.”

Kevin Leith, Trustee Chair, added: “This was a truly collaborative process with all stakeholders working closely to complete the deal. WTW led a thorough and competitive selection process, following which we chose Just as our preferred partner. We were impressed by Just’s commitment to member experience and its ability to tailor its proposition to meet our needs. I’d like to thank the MC UK management team for its support throughout this process, as well as our advisers and the team at Just. We now look forward to building on this success and working with Just in the next phase of our journey.”

Greg Robertson, Director in WTW’s Transactions Team, commented: “We are delighted to have advised the Trustee on this transaction. There were a number of benefit complexities, which we worked closely with Just to structure and implement. Despite these complexities, the Trustee was able to navigate a busy market and obtain multiple quotations by presenting a clear strategy that maximised engagement.”

Source: Just Group