Legal & General agrees £370m buy-in with Heathrow pension scheme
Life insurance and pensions firm Legal & General has announced a £370m ‘buy-in’ with London Heathrow’s pension scheme to shore up the savings of more than 1,400 savers.
The buy-in, an insurance policy that covers a pension scheme’s liabilities, is L&G’s second with Heathrow following a £325m backing in 2018 covering 1,300 retirees
Bosses at L&G said the firm had set up umbrella contract as part of the transaction to allow it to potentially include further protection later.
Adrian Somerfield, Director, Legal & General Retirement Institutional, said: “Having built trust and a strong relationship with the Trustee over a number of years, we are delighted to have secured the retirement benefits for another 1,400 members.
“Our umbrella contract ensures we are able to move forward with the Trustee in a swift and effective manner as they continue their de-risking plans.”
Heathrow’s pension scheme is an existing client of L&G, with the firm’s investment management business handling the Heathrow scheme’s assets.
Phil Wilbraham, chair of the board of trustees of the BAA Pension Fund, said: “The Trustee is delighted that this deal continues to de-risk the overall pension scheme and the deal is testament to great teamwork between L&G and the Trustees excellent advisory team.”