The Misys Retirement Benefits Plan has completed a £25m bulk purchase annuity buy-in with Legal & General.
The transaction, which covers around 190 deferred and pensioner members, builds on a previous buy-in completed with L&G in 2012 that covered approximately £23m of pensioner liabilities. This latest transaction means all members of the plan are now insured with L&G.
“As the professional corporate sole trustee to the Misys Retirement Benefits Plan, we are pleased to have completed this second transaction with L&G, building on our member benefit security. We are confident that the transaction represents a fantastic outcome for our members, all of whom will be well supported going forward. This positive outcome reflects the strong support and collaborative engagement of the sponsor and all our advisers. In particular, we wish to thank Aon, Burges Salmon and L&G for their collaboration and expertise in achieving this transaction,” said David Brickman, Trustee Director at Independent Governance Group.
“We are delighted that the Misys Retirement Benefits Plan has been able to benefit from L&G Flow, our tailored proposition for smaller schemes. Through L&G Flow we can provide a sustainable solution for smaller pension schemes to access immediately transactable pricing, flexible premium payment and tailored post-transaction support,” added Matthew Dales, Director, Pensions Risk Transfer, Institutional Retirement at L&G.
Aon advised the Misys Retirement Benefits Plan.
“This transaction is a very good example of how smaller schemes can achieve excellent outcomes in a busy market. We worked closely with L&G to ensure affordability, which was a key objective for both the trustee and the sponsor, including agreeing a premium payment mechanism that provided much-needed certainty around the contribution required. Using our experience of working on transactions of this size, we were able to coordinate all parties effectively, allowing us to move the transaction to a swift, secure and favourable outcome once the decision was taken to proceed,” said Joe Hathaway, Associate Partner on the risk settlement team at Aon in the UK.