The announcement marks Legal & General’s second transaction with the Doncasters Limited (“the Sponsor”), following a c£175 million buyout completed for the Triplex Section of the Plan in 2018, which covered over 600 deferred members and 1,400 retirees. The transactions cover two different sections of the Plan, which is now fully insured.
The Sponsor is a leading international manufacturer of high-precision alloy components for aerospace, industrial gas turbine, specialist automotive and petrochemical markets.
The Plan was an existing client of Legal & General’s investment management business (“LGIM”), which enabled the Trustees to price-lock the LGIM invested funds, ensuring price certainty when favourable market conditions arose.
The Trustees were advised on the transaction by XPS and legal advice was provided to the Trustees by Burges Salmon.
Adrian Somerfield, Director, Legal & General Retirement Institutional: Long-term trust and partnership are the foundations of our business, and we are delighted to have worked over the years, and across Legal & General, to help the Trustees of the Triplex Lloyd Plan achieve their de-risking objectives. Working with the Trustees we have now been able to provide security for over 3,000 scheme members.
As the Plan moves towards buyout, our in-house client service team will proceed towards welcoming all their members as Legal & General pension policyholders.”
Brian Hollis, Chair of Trustee Board, Triplex Lloyd Final Salary Plan: We are delighted to have achieved this significant milestone, which together with previous transactions undertaken, now secures all our members’ benefits for the future. We believe this is an excellent outcome for our members, providing certainty whilst also ensuring a quality member service is maintained over the longer term. Thanks to my Board colleagues, all our advisors for getting us over the line and also to our professional trustee, Tom Lukic of Dalriada Trustees Limited. I must also acknowledge the co-operation of our corporate sponsor, without whose help this would not have been possible.
Paula Haughton, Client Lead - Risk Transfer Team, XPS Pensions Group: The Triplex Section of the Triplex Lloyd Final Salary Plan has been a long-standing client of XPS Pensions Group, with my colleague Steve Shearsby undertaking the Scheme Actuary role for over 16 years and steering the combined scheme towards its long-term destination. The work to ensure the scheme is on a solid foundation has involved significant data preparation, journey planning, GMP equalisation for one of the sections and ultimately a merger of sections to achieve full insurance. The Trustees and Sponsor worked collaboratively and their commitment and proactivity, and L&G’s pricing terms and locking of LGIM funds led to a great result for the scheme and its members.
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