Electronics organisation Leonardo Electronics has completed a £160 million buy-in pension scheme with Just Group.
This is the first buy-in for the scheme, which has been obtained in an attempt to reduce risk while still offering new benefits to active employees.
This deal benefits 1,253 members with non-trivial annual pensions in the organisation’s £1 billion UK pension scheme, including employees in its electronics, defence and security systems divisions. Leonardo Electronics was advised by global professional services firm Aon and UK law firm Burges Salmon.
Mike Nixon, head of pensions at Leonardo Electronics UK, said: “It’s great news that we have secured the benefits of our pensioners with Just Group and that we were able to complete the transaction despite the turbulence in markets. Our scheme is still open to accrual, but our strong funding position meant we have been able to lock down this risk at an early stage. We received excellent support and advice from Aon and our other advisers, Burges Salmon and both the solutions and derivatives teams at River and Mercantile throughout the transaction.”