On the go: The circa €2.4bn (£2.1bn) TUI Group UK Pension Trust, comprising the BAL Scheme, TUI UK Scheme and TAPS Scheme, has secured two buy-ins worth around £800m with Legal & General Assurance Society.
The BAL section has secured a £610m partial buy-in and the TAPS section a £184m full buy-in, marking the scheme's first pension risk transactions with L&G.
Mike Roberts, from Pan Trustees, and chair of the trustee board of the TUI schemes, said: “We are very pleased that this transaction has successfully concluded at attractive pricing, closing the gap to being fully funded and providing increased security of benefits for members of the scheme.”
He continued: “Working with the support of TUI we ran a thorough process to select L&G and we are delighted to have achieved such a positive step for the benefit of our membership.”
The trustee was advised on the transaction by LCP and also received legal advice from Linklaters. The scheme sponsor was advised by Isio and Herbert Smith Freehills.
Imogen Cothay, partner at LCP, noted that "with a long-term target of full insurance, the market volatility arising due to Covid-19 provided a springboard for the trustee to take a significant step towards reaching their long-term goal".
She said: "We’re delighted to have helped the trustee successfully reach this milestone, and achieve pricing which surpassed the trustee’s original expectations.”
This article originally appeared on Mandatewire.com
