International professional services firm Aon has advised Kier Group-sponsored Mouchel Business Services Limited Pension Scheme (Money Purchase Component) (MBS-MP) on a transaction to secure benefits for all members of the Just Group, an arrangement supported by the Smart Pension Master Trust.
The Muschel Money Purchase segment operates as a defined contribution arrangement that includes a defined benefit basis. Under this structure, the plan guarantees that members will receive an additional payment in retirement if the value of their defined contribution savings does not reach a specified minimum level.
The presence of underpinnings adds to the complexity of securing an insurance solution. Since the foundation could not be secured in its current form, adjustments were made to reshape members’ benefits.
Along the way, members are counseled and provided with educational resources and independent financial advice to support their decision-making.
The deal also includes plans to move to full management. Through Just Group’s partnership with Smart Pension, different elements of member benefits will be managed through an integrated service framework.
Aon provided a wide range of advisory services in support of the transaction, including strategic planning and project oversight, risk settlement brokerage, member option guidance and defined contribution investment advice.
Russell Powles, associate partner and head of the underpinning team at Aon, commented: “This is a fantastic outcome for the scheme and its 220 members, and was only achieved through close collaboration with Vidett, the scheme trustees, Kier Group Limited and Just. The project involved a complex underpinning scheme that required an innovative and collaborative solution with Just, which was led by Aon’s dedicated underpinning team, combining expertise in member selection and risk resolution.
“Communication and member choice support will be crucial to the success of this campaign. Members were provided with paid independent financial advice prior to the transaction to help them consider their options and choose the form of benefits that best suited their needs.”
Vidett’s Curtis Mitchell added: “On behalf of Vidett and the trustees we are very pleased to have completed this transaction, which secures the interests of the scheme’s 220 members.
“Due to the complexity of the programme, this was not a normal risk transfer exercise. Aon was instrumental in ensuring that the activity was completed as planned, in line with our objectives and that all necessary requirements were provided or arranged for the project. The project also required extensive legal advice from Hogan Lovells. This legal advice was concise and delivered on time, which was important in ensuring the project progressed as expected.
“Kier Group Limited also played an important role in the transaction, supporting the trustees throughout.”
Jas Bhogal of Kier Group Limited said: “This is a very complex job involving multiple work streams. The technical expertise provided by all the consultants in our working group was crucial to completing the project on time and achieving a good outcome for MBS-MP scheme members.”
Geraint Jones, senior business development manager at Just, noted: “We are delighted to be able to secure the benefits for all members of the scheme. Working closely with Aon’s dedicated support team, we are able to support innovative solutions that unlock the potential for member benefits to be insured and provide long-term certainty. Key to delivery is our Beacon pricing service, which facilitates ongoing price monitoring during the pre-deal process. This transaction is a positive development for trustees and sponsors seeking to insure similar schemes with defined contribution benefits and a defined benefit basis.”
