SCA UK Pension Plan, sponsored by Essity Holding UK Limited, has completed a buy-in bulk purchase annuity transaction with Legal & General.
The deal, worth £1.1bn, secures the benefits of 5,900 retirees and 3,600 deferred members.
“I’m delighted that the trustees, Essity, Legal & General and our advisers have been able to work together to complete this transaction. It is good news for our members and increases the level of security that their pension benefits will be paid in full. The outcome was only possible in the time frame as a result of the great team effort between everyone involved,” said Carol Woodley, Chair and Independent Trustee Director at SCA UK Pension Plan.
Legal & General has a long-standing relationship with the plan, which has been a client of L&G’s Asset Management division for 31 years.
“We are very pleased to have agreed this buy-in today with the SCA UK Pension Plan, allowing us to deepen our existing relationship with the client and create greater security for its members,” said Andrew Kail, CEO, Legal & General Institutional Retirement.
“We are continuing to see an acceleration in demand across the sector with c£1.4 trillion of DB pension scheme assets sitting on UK company balance sheets. Our long-standing relationships with clients, including through our Asset Management division, allows us to support pension schemes through their de-risking journey, working in collaboration with clients such as the SCA UK Pension Plan to maximise outcomes for Plan members and Trustees,” he added.
Lane Clark & Peacock acted as lead transaction adviser and advised the plan’s trustees in all aspects, while Slaughter and May provided legal advice and Muse Advisory acted as pensions manager.
“One of the most important decisions in today’s market is how to approach and engage with insurers to best deliver the transaction objectives. The bespoke process followed here did exactly that and delivered highly competitive pricing and full tailoring to the trustee’s and sponsor’s timeline and desired terms,” said Clive Wellsteed, Partner and Lead Transaction Adviser, Lane Clark & Peacock.
