Legal & General has agreed a roughly £17 million full scheme buy-in transaction with John Good & Sons Limited Pension Scheme covering the benefits for over 80 pension scheme members.
The scheme is an existing L&G client, with the trustee having appointed L&G Investment Management (LGIM) as its fund manager in 2003.
Transaction preparation was described as 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 is said to have reacted quickly to enter a price lock to its LGIM Buyout Aware fund units.
This process reportedly ensured that the scheme had the price certainty it needed to then agree the terms of the buy-in and complete the transaction.
“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, added, “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.”