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Daily Insurance Industry News
Saturday 21st of July 2018
October 26, 2011

L&G secures £1.1bn bulk annuity deal

by Gill Montia

Story link: L&G secures £1.1bn bulk annuity deal

Legal & General has secured a £1.1 billion bulk annuity deal with the Trustee of the T & N Retirement Benefits Scheme (1989).

The scheme has been in a Pension Protection Fund (PPF) assessment period since 2006.

However, because its financial strength exceeds the threshold below which the PPF would automatically step in, the Trustee must by law wind up the scheme outside the PPF.

L&G says it has been chosen because it has the administrative capability, pensions expertise and the reputation to deliver a trusted service to scheme members.

At the same time, the Trustee is convinced that scheme’s financial position is such that it remains unable to pay members’ full original pensions and that there is no real prospect that it could ever have sufficient assets to provide larger pensions than L&G will provide.

Mercer Limited advised the Trustee on the transaction, with Allen & Overy LLP providing legal advice.

 

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