22 Sep 2021
Legal & General agrees a £250m buy-in transaction with the Selecta UK Pension Plan
Legal and General Assurance Society Limited (“Legal & General”) today announces that it has agreed a £250m buy-in transaction with the Selecta UK Pension Plan (“the Plan”) securing the benefit payments of approximately 1,000 pensioners and 1,000 deferred members.
Selecta 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.
The buy-in also significantly reduces future pension funding risk from Selecta's point of view, providing more business certainty for stakeholders and aligns with actions taken in supporting and securing members' benefits.
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.
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.
Celia Monteiro, Director, Pension Risk Transfer, Legal & General Retirement Institutional
For further information, please contact:
PR & Communications Director, Legal & General Retirement Institutional
DB/Final Salary pension schemes de-risking -buy-ins, buy-outs, longevity insurance
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