Mowlem pension fund heals risk with buyout deal
Bloomberg
Mowlem (1993) Pension Scheme, Wolverhampton, England, agreed to a £150 million ($206 million) buyout with Legal & General Assurance Society.
The pension fund fell into the assessment period for the Pension Protection Fund, London, in 2018 following the insolvency of its sponsor, Sovereign Hospital Services. The firm was part of the Carillion Group.
The deal is a PPF-plus transaction, meaning the trustees have secured greater benefits than those that would have been provided by the PPF.
The plan has more than 360 deferred participants and 650 retirees. We are very pleased that we have been able to work so collaboratively with all parties involved in this transaction, said Chris Martin, executive chairman at Independent Trustee Services, the trustee for the pension fund, in a news release. The support and collaboration of the PPF was also a key part of the process.
So far, DC plans have largely been focused on the onset of auto-enrolment and changes to the regulatory framework - be it the ‘charge cap, ‘pension freedoms or consultations around ‘value for money , says Annabel Tonry, Executive Director at J.P. Morgan Asset Management (JPMAM).Download
In 2015 George Osborne, then the UK Chancellor of the Exchequer, decided that those age over 55 could take much more of their pension in cash. This has since opened up a range of possibilities for DC scheme members in the world of pensions.Download
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By IPE Staff2021-01-15T10:52:00+00:00
The defined benefit pension scheme for Marie Curie has agreed to a £30m (€33.2m) full scheme bulk annuity transaction with Legal & General Assurance Society Limited.
The transaction, agreed early in January 2021, secures the benefits of more than 300 retirees and deferred pensioners, it was announced.
The scheme is an existing client of Legal & General Investment Management (LGIM), which has managed a proportion of the scheme’s assets since 2010.
William Medlicott, the scheme’s chair of trustees, said: “We are very pleased to have secured the benefits of our members with Legal & General. The scheme has worked with them over many years and we have found them to be an excellent partner.”