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Over £12bn of bulk annuities completed to date

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The expertise to deliver bespoke solutions

Abacus

AA- Insurer Financial Strength rating from Fitch

Why consider a Bulk Purchase Annuity?

Bulk Annuity solutions help Defined Benefit pension schemes to de-risk. It's essentially an insurance policy that helps secure members’ benefits by removing risks to the scheme, such as:

  • Investment underperformance
  • Members living longer than expected
  • Interest rate changes and inflation

Our Bulk Annuity solutions

There are two main solutions for Defined Benefit schemes – "Buy-in" or "Buy-out" policies, and we offer both.

The main difference between the two options is that a "Buy-in" covers a proportion of the pension scheme’s liabilities and is held as an asset of the scheme. This means the pension scheme continues to make pension payments directly to members. While with the "Buy-out" option, an insurance policy is issued to each pension scheme member individually, which enables the scheme to wind up.

Buy-in option for DB schemes

  • Removes investment, longevity, interest rate and inflation risks for the members covered by the policy.
  • The Buy-in is held as an asset of the scheme and we make monthly payments to the scheme in relation to the benefits of covered members.
  • The scheme remains responsible for making payments to members.
  • Can cover a subset of the liabilities allowing for partial or phased de-risking.

Buy-out option for DB schemes

  • Removes investment, longevity, interest rate and inflation risk as well as the risks of future running expenses for the scheme.
  • Typically can cover all members of the scheme, both deferred and current pensioners.
  • Members covered by the Buy-out would be issued individual policies by us.
  • We pay the monthly pensioner payroll directly to members and take responsibility for ongoing administration.
  • Additional cover can be bought to cover any data risks, providing more certainty for employers.

Is my scheme ready for a Bulk Purchase Annuity?

We’re happy to talk no matter where you are on your de-risking journey. Send us an email and we can arrange a time to talk about next steps.

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In general, your Scheme Actuary should provide regular advice about the options open to you depending on where you are on your de-risking journey.

If your Scheme Actuary advises a transaction looks like it could be feasible, appointing a specialist de-risking consultant will help you to work out if a Buy-in or a Buy-out solution is suitable for your pension scheme.

Specialist consultants will also be able to advise you on the steps to take to get your scheme into a position which is attractive to the insurance market.

Why choose Standard Life for your Bulk Purchase Annuity policy?

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Our experience

  • We have over 13m policyholders, paying over £250m per month in pension payments*
  • We have the expertise to tailor and develop bespoke solutions to meet your needs
  • We’ve completed more than £12bn of bulk annuity deals to date*
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We offer the full package

  • For “Buy-ins” we offer an umbrella contract approach, so future transactions can be completed quickly and efficiently
  • The Standard Life Trustee Buy-out Plan covers your DC liabilities as well
  • Member care is our top priority – we have a dedicated Client Services team to provide a seamless experience
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Financial strength

  • We’re part of the Phoenix Group – the UK’s largest long-term savings and retirement business
  • Phoenix is well-diversified and has a AA- rating from Fitch ratings
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Focus on sustainability

  • We integrate ESG considerations into our investments – including an exclusions policy
  • We’re committed to achieving a net-zero carbon impact by 2050

*Figures correct as at January 2022

Meet our expert team

Press releases

Standard Life completes £175m full scheme buy-in of the Findel Group Pension Fund

Standard Life, part of Phoenix Group, has concluded a £175M bulk purchase annuity transaction covering all members of the Findel Group Pension Fund.

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Standard Life makes senior hire to its Defined Benefit Solutions team

Standard Life, part of Phoenix Group, announces the appointment of three hires to its Defined Benefit Solutions business, strengthening the company's Bulk Purchase Annuity capabilities.

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PerkinElmer pension scheme buy-in

Standard Life completes £130 million full scheme buy-in for 900 scheme members.

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Standard Life Completes £1.8bn Bulk Purchase Annuity Pensioner Buy-In

Standard Life, part of Phoenix Group, has completed a £1.8bn Bulk Purchase Annuity (BPA) transaction covering c.6,600 pensioner members.

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Standard Life completes £1.7bn full scheme buy-in with Gallaher Pensions

Standard Life, part of Phoenix Group, has concluded a £1.7bn bulk purchase annuity transaction covering all members of the Gallaher Pension Scheme ("the Scheme").

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