L&G completes buy-in with Howden Pension

Legal & General Assurance Society Limited announced that it has completed a GBP230 million buy-in for all the pensioner and deferred members of the Howden Group Pension Plan, covering nearly 2,000 members in total – with around 2/3 being current pensioners.

This transaction for the Howden Plan follows on from a previous GBP250 million transaction completed by Legal & General at the end of 2017 for another UK-based pension scheme in the Colfax Corporation group. Legal & General has insured benefits for all the Plan’s members and will now work with the Trustees and their advisers to transfer responsibility for paying members’ benefits which will enable the Plan to complete its buyout.

Chris DeMarco, managing director, UK Pensions Risk Transfer, Legal & General Retirement Institutional, said: “The Howden Plan is a long-standing client of Legal & General Investment Management and we are delighted to have been able to help the Trustees take the next step in their de-risking journey by completing this transaction. Through a close collaborative relationship with the Trustees and their advisers, we were able to deliver a solution which mirrored some of the Plan’s more complex details, whilst providing the reassurance of the strength, experience and client service capabilities of Legal & General. We look forward to continuing our work with the Trustees in the future.”

Crawford McLean, chairman of the Trustees, Howden Group Pension Plan, said: “The Trustees are delighted to have been able to provide our members with the long-term assurance this transaction affords. We have worked closely with the company over the past few years to improve the Plan’s funding position to be fully funded. This has enabled us to steadily reduce the Plan’s exposure to uncertain asset returns. Insuring benefits for all members was the next logical step in this process and also removes the Plan’s exposure to longevity risk. The Trustees also liaised closely with Legal & General to develop the best solution for our members and to improve the security of their benefits. We look forward to continuing to work together as Legal & General assumes responsibility for paying our members’ benefits.”