As part of the transaction, the Scheme was closed to future accrual. Active members were given the choice of transferring their benefits to another M&G group pension scheme and continuing with defined benefit accrual in that scheme or having their benefits secured as part of the buy-in and joining a defined contribution arrangement for future accrual. The buy-in has therefore secured the entirety of the Scheme’s liabilities.
The transaction also involved a transfer of the Scheme’s illiquid assets to PAC.
Mark Thompson, Chair of Trustee, commented: “We are pleased to have achieved this significant step that will provide greater security for members’ benefits. The collaborative approach between the Trustee, M&G and our advisers has meant that we have been able to insure our members’ benefits sooner than we expected and so this is a very positive outcome.”
The Mayer Brown team was led by Pensions partner Andrew Block and included partner Giles Bywater, counsel Esther White and senior associate Henry Corrigan (all London).
