Misys, a financial software firm that is now part of Finastra, has completed a £25 million buy-in for its retirement benefits plan.
The transaction covers around 190 deferred and pensioner members and builds on a previous pensions buy-in with Legal and General in 2012, that covered £23 million of pensioner liabilities. All members of the plan are now insured.
Aon, Burges Salmon and Legal and General collaborated on the transaction and offered advice throughout. Aon used its pathway approach for transactions under £150 million, and Legal and General used its flow process.
David Brickman, trustee director at Independent Governance Group, said: “As professional corporate sole trustee to the Misys Retirement Benefits Plan, we are pleased to have completed this second transaction with Legal and General, building on our member benefit security.
“We are confident that the transaction represents a fantastic outcome for our members, all of whom will be well supported going forward. This positive outcome reflects the strong support and collaborative engagement of the sponsor and all our advisers.”
Joe Hathaway, associate partner on the UK risk settlement team at Aon, added: “This transaction is a very good example of how smaller schemes can achieve excellent outcomes in a busy market. We worked closely with Legal and General to ensure affordability, which was a key objective for both the trustee and the sponsor, including agreeing a premium payment mechanism that provided much needed certainty around the contribution required. We were able to coordinate all parties effectively, allowing us to move the transaction to a swift, secure and favourable outcome once the decision was taken to proceed.”
Matthew Dales, director, pensions risk transfer, institutional retirement at Legal and General, said: “We are delighted that the Misys Retirement Benefits Plan has been able to benefit from Legal and General Flow, our tailored proposition for smaller schemes.”
