Legal & General Assurance Society Limited today announces that it has agreed a £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 Legal & General client, with the Trustee having appointed Legal & General Investment Management 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.