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Legal & General enters £250m buy-in transaction with Selecta UK Pension Plan

22nd September 2021 - Author: Katie Baker

Legal & General has agreed a £250m buy-in transaction with the Selecta UK Pension Plan securing the benefit payments of approximately 1,000 pensioners and 1,000 deferred members.

Legal_&_GeneralSelecta UK is Europe’s leading coffee and vending machine operator. The Plan has an existing relationship with Legal & General, having worked with Legal & General Investment Management (LGIM) as its asset manager since 1992.

This enabled an extremely smooth asset transfer, with Legal & General also being able to lock to the Plan’s existing assets which provided price certainty to the Plan at an early stage of the buy-in process.

Hymans Robertson was the lead transaction adviser. Legal advice was provided to the Trustee by Pinsent Masons and to Legal & General by Macfarlanes. The sponsor was advised by PWC.

Celia Monteiro, Director, Pension Risk Transfer, Legal & General Retirement Institutional said: “Working with pension schemes at all stages of their de-risking journey is fundamental to what we do at Legal & General and we are delighted that we have been chosen as the Selecta UK Pension Plan’s buy-in partner, given their long-standing relationship with LGIM.

“This transaction and the smooth transfer of assets once again demonstrates our ability to offer innovative, bespoke, buy-in solutions for our clients. We look forward to continuing to work with the Plan as it continues its de-risking journey, providing further security to its members.”

Dinesh Visevadia, Director at Independent Trustee Services and Trustee of the Plan commented: “This buy-in is the culmination of a long journey of incremental de-risking steps to improve the security of the Plan.

“Hymans Robertson identified a market opportunity and helped us move quickly to take advantage of it through a well-run process, securing excellent terms with Legal & General and significantly improving security for our members.”

Kieran Mistry, Senior Risk Transfer Specialist at Hymans Robertson added: “We are very pleased to have helped the Trustee secure this buy-in, removing the majority of the Plan’s risks.

“As ITS is the sole Trustee, we were able to work swiftly and nimbly with them to take advantage of a short-term period of relative quiet in the buy-in market over the first half of 2021. The result was a highly competitive broking process, with Legal & General presenting a compelling and tailored proposition.”

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