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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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
Find whitepapers
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Clifford Chance Guides £400M L&G De-Risking Pensions Deal
Law360, London (January 26, 2021, 12:38 PM GMT) Legal & General Assurance Society Ltd. has insured £400 million ($550 million) of its own staff pension liabilities against risk connect to investments, as it forecasts continued market volatility could increase demand for similar types of deals.
The deal will mean that pension benefits are protected against investment risks as Legal & General forecasts continued volatility in markets.
L&G said the so-called assured payment policy deal, announced on Tuesday, will protect 385 pensioners and 200 members who have left the company but still have savings in the scheme.
By Susanna Rust2021-01-26T15:34:00+00:00
Legal & General has agreed an assured payment policy (APP) transaction for around £400m (€451m) with the Legal & General Group UK Senior Pension Scheme.
The deal provides investment risk protection for the pensions of around 200 deferred members and 385 pensioner members.
In exchange for an upfront premium, APPs provide pension schemes with a pre-agreed series of cashflows, selectively insuring against investment-related risks such as changes in asset yields, interest rates and inflation. Longevity and wider demographic risk protection can be added subsequently through conversion to a bulk annuity, but are not covered by an APP.
“At the simplest level an APP does the reverse of a longevity insurance contract,” said Frankie Borrell, head of client solutions at Legal & General Retirement Institutional. “It isolates and tackles investment risk and inflation risk, passing that to the insurer whereas the longevity and demographic