On the go: The £4.5bn Deutsche Bank (UK) Pension Scheme has entered into a buy-in agreement with Legal & General Retirement Institutional.
The £570m buy-in is the first pension risk transfer for the scheme, sponsored by a subsidiary of Deutsche Bank. It was completed in the second half of 2020 under an umbrella contract, which will allow quick completion of possible future transactions with L&G.
Michael Wrobel, chair of the trustee board, called the buy-in “a significant step on our derisking journey”, saying the deal established “a strong platform” for future derisking.
The scheme has a funding surplus and plans to reach full insurance “over the medium term”.
LCP advised the trustee alongside CMS, which provided transaction legal advice. Aon acted as scheme actuary and investment adviser, and Slaughter and May as ongoing legal adviser.
Eversheds Sutherland provided legal advice to L&G.
David Fink, partner at LCP, said he believed umbrella contracts are “going to increasingly be the norm for large schemes”.
This article originally appeared on mandatewire.com
