Legal & General has finished a £34m buy-in with the Walkers Shortbread Limited Retirement Benefits Scheme, securing the benefits of 161 retirees and 238 deferred members.
Furthermore, the Scheme is a client of Legal & General’s Asset Management division, which invested and managed all of the Scheme’s assets. This longstanding relationship led to the trustees working exclusively with Legal & General using its Flow solution.
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With Flow, Legal & General provided the trustees with immediately transactable pricing, which was locked to the value of the scheme’s assets, so that the trustees could move quickly to complete the transaction knowing that affordability wouldn’t change.
In addition, as the Scheme was invested in Asset Management funds, the trustees were able to pay the premium via novation of their unit investments, ensuring an efficient asset transfer with no additional costs.
Dominic Moret, Head of Origination & Execution, Legal & General, Institutional Retirement said: “Flow maintains our proud heritage of supporting pension schemes of all sizes. A growing number of smaller schemes are seeking to achieve full insurance. We are growing our capacity to support smaller schemes in a sustainable way, so that we can continue to deliver high quality post-transaction service. This includes both support for pension scheme trustees and third-party administrators during the data cleanse phase and delivering high quality service to members into the future.
“This transaction illustrates how our Flow proposition can further support clients of our Asset Management business with an efficient and cost-effective asset transfer, to help Schemes transact smoothly and without any additional or unexpected costs. We are delighted to have helped the Scheme to secure and protect its members’ benefits.”
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By GlobalDataMike Kennedy, Director at ProPensions Limited, Chair of the Trustee Board, added: “This was a textbook transaction that showed the benefits of getting the preparation stages right. From deciding to proceed with a transaction, the trustees, advisers, and employer worked closely over the next few months to get the Scheme buy-in ready. Through Barnett Waddingham’s ongoing engagement with Legal & General we identified an opportunity to transact sooner than planned. With Barnett Waddingham’s clear and timely support, as well as that of our legal advisers at Pinsents, we were able to take advantage of that opportunity and secure a fantastic outcome for the Scheme members and the sponsoring employer.”
Adam Walker, Risk Transfer Partner, and Euan Sunderland FFA, Risk Transfer Consultant at Barnett Waddingham, noted: “After nearly twenty years of working with the trustees and the company to create greater security for members, the Scheme was well prepared to capitalise on a timing opportunity and do a deal with the client’s preferred insurer. Our team’s thorough understanding of both Legal & General’s Flow solution and the Scheme itself made this possible, along with Legal & General’s pro-activity and co-operation throughout. The willingness of the trustees and company to act quickly resulted in a great outcome for Scheme members.”
