On the go: The Mowlem (1993) Pension Scheme has entered into a £150m buyout transaction with Legal & General Assurance Society, securing benefits outside of the Pension Protection Fund.
The transaction has enabled the scheme to exit the PPF’s assessment period, which it entered in 2018 after the liquidation of its sponsor, Sovereign Hospital Services, which is part of the Carillion Group.
Benefits in excess of those payable from the PPF have been secured and Adrian Marshall, risk transfer adviser at Mercer, said the outcome of the deal with L&G has “exceeded expectations”.
Mercer Investment Consulting advised the trustee of the scheme, with legal advice provided by Sackers. L&G obtained legal advice from Clifford Chance.
After unsuccessful talks with its lenders and the UK government, Carillion made an application in January 2018 to the High Court for compulsory liquidation.
Soon after it was announced that the contractor’s defined benefit pension schemes would enter an assessment period at the PPF.
Carillion had 13 final salary plans in the UK with more than 28,500 members, and an aggregate deficit for PPF purposes of around £800m.
This article originally appeared on mandatewire.com
