Pension schemes sponsored by Ford Motor Company Limited, including the Ford Hourly Paid Contributory Pension Fund and the Ford Salaried Contributory Pension Fund, have completed bulk purchase annuity buy-ins with Legal & General worth a total of £4.6bn.
The buy-ins were completed as part of one combined transaction, which secures the benefits of over 35,000 retirees across the two schemes.
“Having worked towards this for many years, we are delighted to have achieved this significant further de-risking milestone, providing even greater security for our members. The outcome achieved is testament to the commitment and dedication shown over many years by the Trustees and Ford to support the Funds, as well as the skill and expertise of our advisers. We are delighted to extend our long-standing partnership with L&G through the buy-in for the Funds and look forward to working together to continue to support our members,” said Jonathan Wood, Chair of Trustees.
“We are delighted to have agreed a buy-in for these Funds, through a smooth and collaborative process that was delivered in a remarkably short timeframe. At the heart of our approach is a strong focus on customer service and member experience and we look forward to supporting the scheme members through their retirement. Beyond our commitment to first-class service, what truly sets L&G apart is our ability to combine deep partnership and tailored solutions across both asset management and PRT. This is a great example of all parties working together to deliver a positive outcome for the Trustees and Sponsor, while securing the retirement benefits of tens of thousands of members,” added Andrew Kail, CEO, Institutional Retirement at L&G.
The Trustees were advised by Aon as lead transaction adviser and Mayer Brown as lead legal advisor. Hogan Lovells also provided legal advice and Aptia provided administration support to the Trustees. Slaughter and May provided legal advice to L&G.
“It has been a privilege to have led advice to the Trustees on this landmark transaction. This continues to demonstrate that there are highly attractive insurance de-risking opportunities for large and well-prepared schemes, as well as the scope to negotiate bespoke terms to meet specific requirements. Effective and nimble decision making, as well as many months of detailed preparation, including readying the asset portfolio within the existing investment structure, ultimately enabled the Trustees to capture market opportunities and to secure an exceptional outcome for members,” said Hannah Brinton, Partner at Aon.
The deal is the largest pension risk transfer transaction announced in the UK in 2025.