I find this hard to understand. Standard Life owns ReAssure. This buy out from the members point of view means losing upside from the pension scheme’s surplus for the reassurance (pun obvious) of an insurance policy underwritten by Standard Life.
How can that be trumpeted as being in the member’s interests? These quotes are from the deal announcement from Standard Life
Standard Life has completed a £260 million bulk purchase annuity (BPA) transaction with residual risk cover with the ReAssure Staff Pension Scheme, securing the benefits of around 2,750 members.
The transaction, which completed in June 2026, covers approximately 1,500 deferred members and around 1,250 pensioners and dependants.
ReAssure, a life and pensions consolidator, was acquired by Standard Life (formerly Phoenix Group) in 2020. Standard Life has worked closely with the Trustee and its advisers in the period leading up to the transaction to support a well aligned outcome for the Scheme and its members.
Mercer acted as risk transfer adviser to the Trustee, with legal advice provided by Gowling WLG.
This buy in represents an important step in the Scheme’s journey to secure members’ benefits over the long term.
I wasn’t aware that Standard Life was going anywhere but being a UK insurer meeting pension bills when from time to time they arise. The ReAssure Staff Pension Scheme was not underfunded, it was so healthily funded that Standard Life will make a tidy profit over time on this deal. That is not part of the deal with pension scheme members.
Golly, this must have been a tussle between the sponsor, the trustees and the advisers -especially as the sponsor is underwriting the deal!
How can Standard Life be considered better as the insurer of annuities than the sponsor of the pension for these folk who worked for ReAssure?
This sounds a very lucrative deal for a lot of associated entities – all of whom can party late into the hot night!
I wonder what the TAS 300 said. That analysis should have been carried out for the Trustees to understand their options . It would make a more interesting read than this advert on Linked in.
It is very simple really!
Standard life is pinching the assets of its pension scheme through the profits on the buy-in policy without having to pay tax on surplus distributions. It is also not having to share those profits with the scheme members.
A warning message for any other trustee boards thinking of purchasing bulk annuities – what is the profit margin you are losing to the Scheme!
The purchase of annuities brings with it FSCS protection. 100% of the pension is covered with no upper limit. I have seen a legal opinion that confirms this even in the case of the annuity being provided by a connected company as in this case. Previously the covenant was with the employer and could perhaps have been described as very strong. Now it’s even stronger!
I am very surprised by your legal opinion on the availability of FSCS coverage for buy-in policies.
The FCA Handbook states:
COMP 4.2 Who is eligible to benefit from the protection provided by the FSCS?
COMP 4.2.117/03/2026R
An eligible claimant is any person who at any material time:
1. (1) did not come within COMP 4.2.2 R; or
2. (2) did come within COMP 4.2.2 R, but satisfied the relevant exception in COMP 4.3.
3. [Note: See COMP 4A.2.2G about special cases in COMP 12A.1 (Trustees and pension schemes) and COMP 12A.3 (Collective investment schemes).]
Persons not eligible to claim unless COMP 4.3 applies (see COMP 4.2.1R)
COMP 4.2.2 17/03/2026 R
This table belongs to COMP 4.2.1R
…
(4) Pension and retirement funds, and anyone who is a trustee of such a fund
…
(9) Bodies corporate in the same group as the relevant person in default or, in respect of a claim against a successor in default, bodies corporate in the same group as a successor or the relevant person, as applicable
…
(13) Large companies, large partnerships and large mutual associations
Trustees of pension schemes
COMP 4.3.1017/03/2026R
1. A person is eligible to claim compensation for claims where they are a trustee of:
1. (1) a personal pension scheme;
2. (2) a stakeholder pension scheme (which is not an occupational pension scheme);
3. (3) an occupational pension scheme insofar as members’ benefits are money-purchase benefits; or
4. (4) an occupational pension scheme insofar as members’ benefits are not money-purchase benefits; and the employer is not a large company, large partnership or large mutual association.