Mercer speeds up pension buy-ins with early data checks

The number of bulk annuity transactions in the small to mid-sized pension scheme sector reached an unprecedented level in 2025, with between 350 and 375 deals completed. This rapid increase highlights how insurers and consultants are now prioritizing efficiency in derisking strategies, moving from drawn-out procedures to deals finalized within weeks rather than months.

Mercer’s DB Master Trust provided a clear example of this transformation in early 2025, securing three buy-ins with Just Group over a short period. The transactions were coordinated by Mercer’s risk transfer specialists, with oversight from independent professional trustees and legal support from Stephenson Harwood. The accelerated timeline resulted not from cutting corners but from structured collaboration among all parties.

Andrew Pugh, the risk transfer lead for Mercer’s DB Master Trust, attributed the speed to the trustees’ prior familiarity with buy-ins. This expertise allowed the team to concentrate on critical decisions without lengthy explanations that might have delayed less experienced boards. The process also drew on the collective knowledge of the three professional trustee firms—PAN Trustees, Independent Governance Group, and Zedra—which govern the master trust.

A distinctive feature of the transactions was the completion of a data cleanse for each of the three master trust segments before the buy-in contracts were signed. Typically, this task occurs after a deal is finalized, but in this case, it was addressed upfront with input from Mercer’s advisers and Just Group. A standardized workflow was established before any further steps were taken.

This early data review produced tangible advantages. By resolving discrepancies beforehand, the trustees gained immediate visibility into the final cost of each transaction—a detail that usually emerges only after post-signing verification. Pugh noted that this approach simplified the true-up premium calculation and shortened the transition from buy-in to buyout. It also accelerated the trust’s ability to wind up the schemes involved.

The transactions benefited further from bundling the three fully segregated sections into a single deal. This consolidation created economies of scale, ensuring insurer capacity and pricing that individual schemes would likely have struggled to achieve. While the market has grown more adept at handling smaller schemes, scaling transactions in this way delivers even better results for participants.

Stephenson Harwood’s Derisking Pathway embodies this industry-wide shift. The firm has formalized its approach to rapid transactions, employing recycled disclosure templates and artificial intelligence tools to expedite document review and reconciliation. The system standardizes legal frameworks, eliminates redundant work, and reduces costs while preserving consistency in contracts and benefit terms.

Estella Bogira, a partner at Stephenson Harwood, emphasized the importance of cross-party cooperation. The whole Mercer DB Master Trust team, led by Tim Ball, and working very closely with Just, really are exceptional. And our client, the trustees, have been outstanding – working alongside Mercer to develop a route that puts member outcomes first.