The rise of interest rates and improved funding levels has meant pension schemes can afford buyout much earlier than previously planned, but still have a significant illiquid asset holding. At Legal & General, we provide flexible solutions to help manage illiquid assets, tailored to every scheme. These include:
Exit solutions
Accepting illiquid assets in-specie as an annuity asset
Accepting assets in specie to hold long-term in our annuity portfolio
Exit solutions
Accepting illiquid assets in-specie for sale
Taking responsibility for the sale of a scheme’s illiquid assets
Liquidity solutions
Deferred premium transaction structure
Providing a deferred premium while the scheme sells the assets
Dual approach
Deferred premium with a backstop
Providing a backstop, meaning that if the scheme has been unable to sell the assets, Legal & General would take on responsibility for the sale.
Case study: Boots Pension Scheme
A record-breaking £4.8 billion full scheme buy-in
Case study: The British Steel Pension Scheme
£7.5 billion secured across four transactions
Resources
Future themes for well-funded schemes
Three key trends are emerging from today's higher funding levels as schemes increasingly seek to ‘bridge’ the gap to their endgame.
A guide to deferred premium transactions
Our deferred premium solution allows pension schemes to lock down pension risk in full whilst deferring part of their premium.
The de-risking journeys of large DB pension schemes
Download our large DB scheme survey 2024
Endgame blog
Our Investment Management business’ dedicated information hub for everything endgame.
Knowledge centre
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