Mayer Brown has advised the Trustee of the M&G Group Pension Scheme (the Scheme) on a £311 million buy-in of the Scheme’s deferred and pensioner liabilities with The Prudential Assurance Company Limited (PAC), a wholly-owned subsidiary of M&G plc. The transaction represents M&G’s re-entry into the bulk annuity market after an absence of seven years.
As part of the transaction, the Scheme was closed to future accrual. Active members were given the choice of transferring their benefits to another M&G group pension scheme and continuing with defined benefit accrual in that scheme or having their benefits secured as part of the buy-in and joining a defined contribution arrangement for future accrual. The buy-in has therefore secured the entirety of the Scheme’s liabilities.
The transaction also involved a transfer of the Scheme’s illiquid assets to PAC.
Mark Thompson, Chair of Trustee, commented: “We are pleased to have achieved this significant step that will provide greater security for members’ benefits. The collaborative approach between the Trustee, M&G and our advisers has meant that we have been able to insure our members’ benefits sooner than we expected and so this is a very positive outcome.”
The Mayer Brown team was led by Pensions partner Andrew Block and included partner Giles Bywater, counsel Esther White and senior associate Henry Corrigan (all London).
