TUI Group UK pension trust completes £370m buy-in with Legal & General

The TUI Group UK Pension plan has completed a £370m (€444m) buy-in with Legal & General, insuring the plan’s remaining benefits.

The transaction follows an initial £610m transaction in 2021, which allowed the parties to work together over the past 18 months to react to favourable market conditions and transact at an opportune time. This, Legal & General said, ensured an efficient transaction while affordability remained attractive.

As part of the transaction, circa £30m of the premium has also been deferred to allow the scheme to run off some illiquid assets and is payable over the next two years.

Overall, the scheme has now completed three transactions with Legal & General, having also completed a £184m full buy-in for the TAPS section of the scheme.

LCP was the lead transaction adviser to the trustee and also provided actuarial and investment advice. Linklaters provided legal advice to the trustees. Isio and Herbert Smith Freehills provided advice to the sponsor, while Macfarlanes provided legal advice to Legal & General.

Mike Roberts, PAN trustees partner and chair of the scheme’s trustees, said securing the benefits of the plan’s members has been the trustees’ aim for “many years”.

He said: “This is a prime example of how collaboration between all parties can get the best outcome for members of the scheme.”

Adrian Somerfield, director of institutional retirement at Legal & General, added: “Working collaboratively with the trustee, sponsor and their advisers, we helped implement an efficient solution for the scheme’s illiquid investments and now look forward to supporting the members over the long term.”

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