Standard Life completes £1.2bn buy-in with Mitchells & Butlers pension plan

The bulk purchase annuity arrangement covers deferred and pensioner members of the plan, who were employed by the publicly-listed restaurant pub and bar chain Mitchells & Butlers.

XPS Pensions Group acted as the lead advisers to the trustees for the BPA transaction, while legal advice was provided by Gowling WLG.

Rhian Littlewood, senior business development manager at Standard Life, said: “We are delighted to have been selected to partner with the trustees to secure the retirement incomes of over 20,000 members. This transaction marks a significant milestone for the plan, and Standard Life is proud to have played a role in supporting the trustees to make this progress in their de-risking journey. 

“Throughout the process, we worked closely with the trustees on a clear strategy and an innovative solution to help manage the sale of illiquid assets, which was crucial to the success of this transaction."

Past pension deficits

Jonathan Duck, chairman of the trustees of the Mitchells & Butlers pension plan, said the trustees were very pleased to have concluded a full buy-in with Standard Life.

He added: "This is an excellent result for all plan members and for M&B plc, something that the trustees have worked hard to achieve over the years.  Both the Mitchells & Butlers pension plan and Mitchells & Butlers executive pension plan are now secured with buy-in policies, a great resolution to the historic challenge of past pension deficits."

Jo Carter, risk settlement Partner at XPS said: “This is one of the most complex transactions in recent years. Significant planning and innovation  has been needed to tackle the plan’s multiple illiquid asset holdings.”

Christopher Stiles, partner at Gowling WLG said: "The M&B Trustees have been a client of the Gowling pensions team for many years, so it is rewarding from both a professional and personal standpoint to see this excellent outcome for the plan members."