Legal and General agrees c.£420m full scheme buy-in with Commonwealth Bank of Australia pension scheme

9 July 2021

Legal & General Assurance Society Ltd (“LGAS”) today announces that it has agreed a c.£420m full scheme buy-in with the Commonwealth Bank of Australia (UK) Staff Benefits Scheme (“the Scheme”).

This transaction covers all of the Scheme’s defined benefit members (approximately 440 non-retired members and 740 retirees). It represents a significant step on its planned de-risking journey. The Scheme has been a client of Legal & General Investment Management (LGIM) for the last 12 years, enabling them to efficiently lock pricing to their LGIM assets ahead of transacting.

The Scheme’s sole Trustee is Capital Cranfield Pension Trustees Limited. They were advised in the transaction by LCP, acting as specialist de-risking adviser to the Trustee, with CMS providing legal advice to the Trustee, and Mercer acting as administrator and Scheme Actuary. Slaughter and May provided legal advice to Legal & General.

Dominic Moret, Head of Origination and Execution, Legal & General Retirement Institutional:
“It was a great pleasure to work with the Trustee, the Sponsor and their advisers on this transaction, after a longstanding investment management relationship. We are delighted to welcome the Commonwealth Bank of Australia’s scheme members to Legal & General as we support the Scheme in providing further certainty to them.”

Source: Legal & General