Mowlem pension scheme secures £150m PPF+ buyout with L&G

The Mowlem (1993) Pension Scheme has agreed a £150m buyout transaction with Legal & General (L&G) Assurance Society, securing benefits above the level of Pension Protection Fund (PPF) compensation.

The scheme entered PPF assessment in February 2018 following the liquidation of its sponsor, Sovereign Hospital Services, which was part of the Carillion Group.

This transaction will secure the benefits of over 360 deferred members and 650 retirees above the level which would have been provided by the PPF.

The trustee was advised throughout the transaction by Mercer, with legal advice provided to the trustee by Sackers, and to Legal & General by Clifford Chance.

Commenting on the deal, Independent Trustee Services executive chairman, Chris Martin, said: “We are very pleased that we have been able to work so collaboratively with all parties involved in this transaction.

"In particular I would like to thank Mercer and Sackers, as our lead advisers, along with Barnett Waddingham as the scheme administrators. The support and collaboration of the PPF was also a key part of the process.

“The extensive experience across ITS and its advisory team, in PPF plus transactions, has helped deliver such a positive outcome for members.”

Legal & General Retirement Institutional origination and execution director, Julian Hobday, added: “We are pleased to have helped the trustee secure benefits in excess of PPF levels for all scheme members.

“This transaction builds on our track record of working with schemes in PPF assessment to bring peace of mind to the members through having their benefits secured with a financially strong, household name insurer.”

Indeed, Legal & General previously agreed a £2.5m bulk annuity deal with the trustee of the BHS Senior Management Scheme, whose sponsor had entered administration in April 2016, again securing the benefits above the level of PPF compensation.

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