On the go: The Commonwealth Bank of Australia (UK) Staff Benefits Scheme has agreed a circa £420m full buy-in with Legal & General Assurance Society.
The transaction covers all of the scheme’s defined benefit members, including approximately 440 non-retired members and 740 retirees.
The buy-in represents a significant step on the fund’s planned derisking journey.
The scheme has been a client of Legal & General Investment Management for the past 12 years, enabling it to efficiently lock pricing to its LGIM assets ahead of transacting.
LCP acted as a specialist derisking adviser to the scheme, while CMS provided legal advice, and Mercer acted as administrator and scheme actuary. The scheme’s sole trustee is Capital Cranfield Pension Trustees Limited.
Peter Thompson, professional trustee at Capital Cranfield, commented: “We are very pleased to have insured the pension benefits for all members of the DB section of the scheme, achieving our goal of providing members with long-term certainty.”
Prior to the buy-in, the scheme’s strategic asset allocation stood at 23 per cent income assets and 77 per cent protection assets.
LGIM handled cash, passive gilts and index-linked gilts, while M&G Investments managed multi-asset credit.
This article originally appeared on MandateWire.com
