Legal & General announces c£17m bulk annuity with John Good & Sons Limited Pension Scheme
The Scheme is an existing Legal & General client, with the Trustee having appointed Legal & General Investment Management (“LGIM”) as its fund manager in 2003.
Transaction preparation was an important part of the process for the Scheme which involved thorough data cleansing and de-risking of the Scheme’s assets into LGIM’s Buyout Aware funds. These funds are specifically designed for schemes approaching buyout, with an investment strategy which aligns with factors that affect buy-out pricing.
When market conditions moved favourably, the Scheme reacted quickly to enter a price lock to its LGIM Buyout Aware fund units. This process ensured that the Scheme had the price certainty it needed to then agree the terms of the buy-in and complete the transaction.
The Trustee was advised on the transaction by XPS Pensions Group, with legal advice provided by Arc Pensions Law.
Adrian Somerfield, Director, Legal & General Retirement Institutional: “This transaction is a great demonstration of the value which can be realised by using Legal & General’s group-wide expertise. We are delighted to have helped a long-standing client on their de-risking journey and look forward to continuing to build on this relationship as the scheme progresses to buyout.”
John Rutherford,Trustee: “We are very pleased to have reached this important stage in our journey to give our members greater security with a well-known and respected company. We have received excellent advice which has enabled us to achieve this in a safe and controlled manner.”
Paula Haughton, XPS Pensions Group, Risk Transfer Team: “This is a great example of a scheme gaining excellent pricing and price certainty during the transaction period, having put in significant work up front to prepare for buyout and through timely decision making.”
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