Hays Group, a prominent name in the global recruitment industry, has successfully completed a £370 million buy-in for the Hays Pension Scheme, ensuring stability and security for its members. The transaction, underwritten by Pension Insurance Corporation (PIC), safeguards the liabilities of the scheme, encompassing 3,368 deferred members and 853 pensioners and dependents. The monumental deal sees Hays Group setting a benchmark in financial planning and strategic execution, with the arrangement notably facilitated by the Group’s substantial advance contribution of up to £13 million.
Strategic Collaborations and Expert Guidance Fuel the Transaction
The intricate transaction drew expertise from various highly-regarded consultancy firms. In the transaction call, PIC received representation from Addleshaw Goddard, while Hogan Lovells advocated for the scheme. Hymans Robertson played a pivotal role, providing actuarial advice crucial for the buy-in. Meanwhile, investment guidance from Mercer helped streamline financial planning efforts. Additionally, LCP stepped in as the lead transaction adviser, ensuring a smooth and efficiently managed deal.
James Hilton, Hays’ Chief Financial Officer, lauded the benefits of the arrangement, asserting that it effectively removes pension-related volatility from the Company’s balance sheet. Hilton also highlighted how the deal positively impacted the Group’s cash flow beginning from FY26. This vital boost enables an enhanced focus on investing in growth and the strategic return of excess capital to shareholders, underlining the buy-in’s potential for future fiscal robustness and expansion.
The collaborative effort among these accomplished consultants and advisers underscores the importance of drawing on specialized knowledge to maneuver complex financial landscapes. Their input not only facilitated a secure outcome for the pension scheme’s members but also showcased the efficacy of external expertise in executing high-stakes financial strategies that align with corporate objectives.
Stakeholder Satisfaction and the Role of Thorough Preparation
Sean Burnard, Director and Chair of Trustees for The Law Debenture Pension Trustee Corporation, reflected on the buy-in transaction as a significant success. He emphasized that achieving the crucial goal of securing pensions for all scheme members marked a milestone for the Trustees. Burnard commended PIC for their commendable track record and exceptional service throughout the transaction. He also pointed out that meticulous preparation and stellar project management played integral roles in ensuring favorable terms were secured.
PIC’s Head of New Business Strategy, Deepash Amin, echoed the enthusiasm, expressing pride in assisting the Hays Pension Scheme Trustees in reaching this pivotal milestone. Amin credited clear objectives and a solution tailored to the Scheme’s needs as key factors contributing to the successful outcome. He reiterated the importance of understanding client requirements deeply and designing bespoke strategies that target specific financial goals and risk tolerances.
Kenneth Hardman of LCP highlighted another critical aspect of the transaction, stating that collaboration and comprehensive preparation were instrumental in obtaining attractive terms with PIC. He cited the teamwork and alignment between all parties involved as vital to navigating the complexities and achieving a favorable conclusion. Hardman’s insights underscore how strategic alignment and proactive planning significantly enhance the chances of success in intricate financial undertakings.
Future Prospects and Financial Implications for Hays Group
Hays Group, a leading entity in the global recruitment sector, has successfully executed a £370 million buy-in for the Hays Pension Scheme, providing stability and security for its members. This significant transaction, backed by Pension Insurance Corporation (PIC), ensures the protection of the scheme’s liabilities, covering 3,368 deferred members and 853 pensioners and their dependents. This landmark deal highlights Hays Group’s proficiency in financial planning and strategic execution. The arrangement was notably supported by the Group’s substantial initial contribution of up to £13 million.
This move sets a new standard in terms of securing long-term financial health for pension schemes. By opting for a buy-in, Hays Group effectively transfers the risk associated with pension liabilities to Pension Insurance Corporation, affording peace of mind to its members. The successful implementation of this buy-in reflects the Group’s commitment to safeguarding its employees’ future, positioning itself as a pioneer in pension scheme management.
