German manufacturer Siemens has completed a £530 million buy-in for its defined benefit (DB) pension scheme, securing pension benefits for more than 2,000 UK-based retirees.
The agreement, secured with Legal and General, builds on a previous transaction agreed in 2018.
The DB scheme sits under an umbrella contract to ensure that potential future transactions can be completed if the organisation contracts or future market conditions continue to fluctuate, giving both parties room to adapt to changing business conditions.
The trustees were advised on the transaction by Aon and Sackers, while legal advice was provided to Legal and General by Eversheds.
John Smith, head of pensions at Siemens, said: “This is another major milestone for the Siemens Benefits Scheme. I am pleased Legal and General was able to offer us competitive terms for this transaction, allowing us to continue to build on the long-standing relationship we have with them here in the UK.”
Joanna Matthews, chair of the Trustee, added: “I am delighted that we have been able to complete another key step in the Trustee’s de-risking journey. Through careful planning, we were able to overcome the logistical and investment challenges posed by Covid-19 (Coronavirus) and complete this transaction at this time on very favourable terms. This is a fantastic outcome and I would like to thank all involved in the process.”