The SCA UK Pension Plan, which is sponsored by global hygiene and health firm Essity Group, has completed a £1.1 billion pensions buy-in.
Headquartered in Sweden, Essity employs 1,600 UK employees across six manufacturing sites and three commercial offices. Its portfolio includes Tena, Cushelle, Tork, Plenty, Velvet and Bodyform.
The transaction, which was carried out with Legal and General, secures the benefits of 5,900 retirees and 3,600 deferred members. It enabled the plan to optimise its investment strategy and agree a price lock and premium payment portfolio that aligned with its assets. This included its asset management pooled fund holdings.
Lane Clark and Peacock acted as lead transaction adviser and advised the plan’s trustees, while Slaughter and May provided legal advice and Muse Advisory acted as pensions manager. Willis Towers Watson and Clifford Chance advised the sponsor and Cameron McKenna Nabarro Olswang gave Legal and General legal advice.
Carol Woodley, chair and independent trustee director at SCA UK Pension Plan, said: “I’m delighted that the trustees, Essity, Legal and General and our advisers have been able to work together to complete this transaction. It is good news for our members and increases the level of security that their pension benefits will be paid in full. The outcome was only possible in the time frame as a result of the great team effort between everyone involved.”
Andrew Kail, chief executive officer at Legal and General, Institutional Retirement, added: “We are very pleased to have agreed this buy-in with the SCA UK Pension Plan, allowing us to create greater security for its members. We are continuing to see an acceleration in demand across the sector, with £1.4 trillion of defined benefit pension scheme assets sitting on UK employers’ balance sheets. Our long-standing relationships allow us to support pension schemes through their de-risking journey, working in collaboration with the SCA UK Pension Plan to maximise outcomes for plan members and trustees.”
