The Bayer Group Pension Plan has offloaded a major chunk of its liabilities after striking a u00a3280m ($340m) buy-in deal with insurer Canada Life.u00a0
Canada Life now has responsibility for about 40% of the pensions in payment liabilities of the UK arm of the German pharmaceutical firm, covering about 1,400 scheme members.
This is the first transaction of its type for the pension plan but further deals could be on the horizon, given that an umbrella contract was also signed as part of the deal which will enable Bayer to offload further liabilities in the future.u00a0
Actuarial consultant LCP acted for Bayeru2019s trustees, which were given legal advice by CMS.u00a0
Eversheds Sutherland provided legal advice to Canada Life, while Isio advised Bayer.
There were two smaller buy-out deals announced around the same time as the Bayer deal.u00a0
The British Red Cross Pension Fund and the Scottish Branch British Red Cross Society Retirement Benefits Scheme agreed a u00a330m bulk annuity transaction with Aviva.
A few days earlier the Landor Cartons defined benefit pension scheme of Landor Cartons completed a u00a36m full scheme buy-in with Just Group.