Financial services organisation Bank of America Merrill Lynch has completed a pensioner buy-in transaction with Scottish Widows, totalling £400 million.
The policy insures the pension liabilities for 915 pensioner members of the Bank of America Merrill Lynch UK Pension Plan, which is the largest pension scheme offered by the organisation.
The transaction forms part of the scheme’s de-risking approach, enhancing the security of members’ benefits while improving the pension scheme’s long-term funding position.
The Bank of America Merrill Lynch has already completed two buy-in transactions for its smaller pension arrangements.
Professional services firm Aon advised the trustees of the Bank of America Merrill Lynch UK Pension Plan during the course of the transaction. Law firm Linklaters provided legal advice.
Peter Gibbs, chairman of the trustees of the Bank of America Merrill Lynch UK Pension Plan, said: “This transaction allowed us to continue our programme of de-risking by securing a bulk annuity for pensioner members on favourable terms, which had led to an improvement in the funding position on the plan’s long-term funding basis.
“We are delighted with the advice and support provided by Aon and Linklaters throughout the transaction process, and to extend the bank’s existing relationship with Scottish Widows by entering this long-term partnership achieving greater security for members in the plan.”
