Legal & General (L&G) has completed a £10m buy-in with the Lowman Pension Scheme, securing the benefits of all 115 members.
The scheme is sponsored by Devon-based property management company Lowman Manufacturing, and the transaction was completed in March.
The buy-in covers 52 deferred members and 63 pensioners. According to adviser Broadstone, the scheme was well prepared for the transaction and insurer pricing came in within the sponsor’s budget.
Broadstone provided administration, actuarial, investment and risk transfer advice on the deal. The trustees selected L&G’s Flow solution, following a review of the market, as it is designed for smaller pension schemes.
Broadstone deal lead and head of trustee services Chris Rice says: “When we started discussing a potential buy-in last year, with the Company setting aside funds to facilitate the transaction, it quickly became clear that dedicated and expert administration support was required. It is satisfying that Broadstone’s administration could deliver market-ready data so quickly and facilitate this transaction with L&G at pace.”
Chair of Trustees Bruce Beacham says: “After two past buy-ins and a bulk transfer out of the defined contribution section, it is rewarding now to have secured the benefits of our remaining members. L&G was a natural partner to consider given they were already heavily involved in the Scheme. We are grateful to Broadstone for the administration support and helping to secure a price that was well within the Company’s reserve.”
L&G head of origination and execution, institutional retirement Dominic Moret says: “This transaction demonstrates how our Flow proposition can deliver certainty, efficiency and smooth execution for schemes approaching their endgame. By novating the Scheme’s existing L&G asset holdings, the buy-in price was directly aligned to those assets, effectively locking in pricing and giving Trustees confidence in the outcome. The approach helps minimise costs, remove unnecessary market risk, and supports schemes in achieving a well-matched, efficient transition to securing positive outcomes for their members.”