Danish transportation and energy organisation Maersk has completed a £1.1 billion pensions bulk annuity transaction with Legal and General.
The arrangement will secure the defined benefit (DB) pension benefits of 1,900 deferred members and 3,000 retired members of the Maersk Retirement Benefit Scheme, removing their investment and longevity risks from the scheme. Members will not see any change in the amount of their benefits or how these are paid following the transaction.
The process took a number of steps to de-risk the scheme and put it in a strong position to successfully complete the buy-in transaction during the current turbulent market.
Nigel Pusey, chair of trustee for the scheme Maersk Retirement Benefit Scheme, said: “This is good news for scheme members. After many years of careful management and de-risking we have now secured our members’ benefits through a buy-in with Legal and General.
“We were impressed with the flexibility and professionalism showed by Legal and General, alongside our advisers, to complete the transaction at a challenging time. We are happy to have formed this partnership with Legal and General, which is an important next step in the scheme’s de-risking journey and improves the security of benefits for all members.”