Reuters pension scheme agrees £310m buy-in with L&G

The Reuters Supplementary Pension Scheme has agreed a £310m full-scheme buy-in deal with Legal & General (L&G) Assurance Society.

As reported by our sister publication, Pensions Age, the buy-in, which is the scheme's first transaction with L&G, involved the assessment and insurance of a complex multi-benefit structure.

The trustee was advised on the deal by Aon and legal advice was provided by Sackers, while L&G received legal advice from Slaughter & May.

The scheme sponsor, Refinitiv, a subsidiary of London Stock Exchange Group (LSEG), also received advice from LCP and CMS.

LSEG head of reward analytics, Ava Lau, highlighted the transaction as a "major milestone" for the pension scheme, following LSEG's acquisition of Refinitiv in January 2021.

"This buy-in transaction is a testament to the collaborative efforts between the trustee, LSEG and their advisers, which also takes the group and the scheme further along in their long-term pension strategy," she said.

Adding to this, trustee chair, Greg Meekings, commented: “As the trustee and company have managed the scheme to a favourable financial position, we were able to provide our members with even greater security as a result of this transaction.

“Having worked with Aon to develop a strategy we were able to work collaboratively with L&G to execute a buy-in covering all members of the scheme. I would also like to acknowledge the positive support from LSEG.”

L&G Retirement Institutional head of pricing & execution, Gavin Smith, described the transaction as a "a great demonstration of how innovation in the market can cater to each pension scheme’s specific needs".

“We are delighted that, through our innovative solutions, including giving the flexibility for the premium to be met through more than one payment, we have helped the scheme towards its de-risking objective," he continued.

“In exchange for the premiums received we will provide payments to the trustee of the scheme in respect of members’ benefits, helping to provide long-term security to its pension scheme members. We look forward to working closely with the trustee on the scheme’s journey.”

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