Imperial Tobacco agrees £1.8bn deal, charity completes full buy-in

Imperial Tobacco Pension Fund completes first buy-in

The circa £4.4bn Imperial Tobacco Pension Fund has completed a £1.8bn bulk annuity buy-in transaction with Standard Life, covering the benefits of around 6,600 pension scheme members. Helen Clatworthy, chair of the trustees of the scheme, said: “This buy-in is a major step in the fund’s derisking strategy and significantly improves the security of members’ benefits.” The scheme’s latest valuation was carried out as at March 31 2019 and showed that the total assets were sufficient to cover 106 per cent of the total benefits that had accrued to members for past service and future service benefits for current members. The scheme’s next triennial actuarial valuation is due as at March 31 2022. Hymans Robertson acted as lead adviser to the trustee for this transaction, while Willis Towers Watson and Isio provided funding and investment advice. Osborne Clarke and CMS provided legal advice. Standard Life was advised by Eversheds Sutherland.

This article originally appeared on MandateWire.com

Fishermen charity agrees £12m full buy-in

The Royal National Mission to Deep Sea Fishermen Retirement Benefit Scheme has agreed a full £12m bulk annuity transaction with Legal & General Assurance Society. The buy-in, which was agreed in November 2021, will secure the benefits of around 90 pension scheme members. It is the first pension risk transfer transaction for the scheme. Legal & General is now working closely with the scheme towards buyout. Sir Jeremy de Halpert, chair of trustees of the scheme, said: “We are delighted to have completed this transaction with Legal & General, which is the next step on the path to securing the scheme’s liabilities and achieving greater certainty for our members.” He noted that it was important that this deal represented good value to the scheme and the employer. “This meant that the premium had to be competitive and that we were able to transact in a cost-effective manner,” he added. Broadstone advised the trustees on the transaction.

This article originally appeared on MandateWire.com