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Buy-in

An insurance policy issued in the name of the trustees of the pension scheme and held as an asset of the scheme

What is a buy-in?

A buy-in is an insurance policy that helps cover a portion of a pension scheme’s liabilities.

It ensures there are enough funds to meet future obligations and is held as an asset of the scheme, alongside other investments.

Schemes often use buy-ins as part of their risk management or long-term self-sufficiency strategies.

Buy-in at a glance

Removes the risks of investment, longevity, interest rate changes and inflation for the members covered by the policy.

Can cover all members or a subset of the liabilities allowing ‘partial de-risking’. For example, deferred pensioners, current pensioners or subsets of either.

Held as an asset of the scheme and we make monthly payments to the scheme in relation to benefits of covered members, while the trustees retain responsibility for administration.

How a buy-in works

Trustees pay a premium to us for the buy-in policy.

The premium can be paid using cash or an in-specie transfer of scheme assets.

Scheme and advisers complete data cleanse.

We pay the benefits specified in the policy in respect of the covered members to the trustee, including any death benefits for dependants.

Trustees and the sponsoring employer remain ultimately responsible for meeting members’ benefits, but the policy removes risks in respect of insured members,

Options available

We offer a tailored approach to every pension scheme

Premium payment

Typically, the scheme pays the full premium upfront.

In some cases, part of the premium can be deferred using our Deferred Premium solution.

Coverage Approach

Usually, a buy-in covers all members or a specific group of members, like current pensioners.

However, a phased approach to de-risking might be suitable for schemes on a longer-term de-risking plan.

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Recent transactions

L&G completes c.£1.6 billion buy-in with the BP Pension Fund

This marks a first transaction for the c.£18 billion Fund.

£800 million buy-in with the Honda Group UK Pension Scheme

This transaction secures the benefits of over 4,700 members.

Over £800m secured for smaller pension schemes using L&G Flow

L&G Flow is our tailored solution for smaller pension schemes, securing the benefits of thousands of pension scheme members across the UK.

£785 million buy-in for Anglo American pension schemes

This transaction covers the Tarmac UK Pension Scheme, the Tarmac ‘B’ Pension Scheme, and the Anglo UK Pension Scheme, securing the benefits of over 7,600 members.

£505 million buy-in with the Inchcape Motors Pension Scheme

Securing the benefits of 2,295 retirees and 5,890 deferred members.

£370 million buy-in with the TUI Group UK Pension Trust

We have completed a £370 million buy-in with the BAL section of the TUI Group UK Pension Trust.

£1.4 billion buy-in with the Sanofi Pension Scheme

This transaction secures the benefits of 4,900 retirees and 5,600 deferred members.

Legal & General completes £34 million buy-in with Walkers Shortbread Limited Retirement Benefits Scheme

We completed a £34 million buy-in with Walkers Shortbread's Retirement Benefits Scheme, securing benefits for 161 retirees and 238 deferred members.

Legal & General completes £1.1 billion full buy-in with Deutsche Bank Pension Scheme

We completed a £1.1 billion buy-in with Deutsche Bank's UK Pension Scheme, securing benefits for around 4,000 members and bringing total insured liabilities to £2.1 billion.

Legal & General completes £1.1 billion buy-in with the SCA UK Pension Plan

We completed a £1.1 billion buy-in with the SCA UK Pension Plan

Legal & General completes £21 million buy-in with The Leprosy Mission Central Pension Scheme

We completed a £21 million buy-in with The Leprosy Mission Central Pension Scheme

Legal & General completes third and final buyout with the Nortel Networks UK Pension Plan

We completed our third and final buyout with the Nortel Networks UK Pension Plan

Legal & General agrees £900 million buy-in with the ICI Pension Fund

We completed a c.£900 million buy-in with the ICI Pension Fund (“the Fund”), securing the benefits of over 7,000 retirees.

Legal & General £16 million buy-in with John Graham (Dromore) Limited Pension and Life Assurance Scheme

£16 million buy-in with John Graham (Dromore) Limited Pension and Life Assurance Scheme

Legal & General agrees £4.8 billion full buy-in for the Boots Pension Scheme

We agreed a £4.8 billion full buy-in for the Boots Pension Scheme, securing the benefits of all 53,000 retirees and deferred members of the Scheme. This marks the UK’s largest single transaction of its kind by premium size and, for L&G, the largest single transaction by number of members.

Legal & General completes £500m buy-in with Deutsche Bank Pension Scheme

We completed a c.£500 million buy-in with the DB (UK) Pension Scheme, securing the benefits of around 2,000 retirees and deferred members.

Legal & General agrees c.£340m buy-in with the Cable and Wireless Superannuation Fund

C.£340 million buy-in with the Cable and Wireless Superannuation Fund, securing the benefits of around 1,800 retirees and deferred members.

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