Newell Brands pension scheme agrees £225m buy-in with L&G

The Combined Newell and Record Section of the Newell Rubbermaid UK Pension Scheme has agreed a £225m buy-in with Legal & General (L&G) Assurance Society, securing the benefits of more than 800 retirees and 900 deferred members.

The trustees and sponsor, Newell Brands, were advised throughout the transaction by Aon, whilst legal advice was provided by Pinsent Masons. L&G also received legal advice from Clifford Chance.

The transaction represents the scheme’s second buy-in with L&G, following a previous buy-in for the Combined Parker and Sanford Section of the Scheme.

L&G was selected as the preferred insurer in December 2021, with a price lock provided at this time on the value of the scheme’s portfolio gilts to provide price certainty over the year-end and into 2022 for the scheme, whilst the terms of the deal were agreed.

Commenting on this, L&G Retirement Institutional director, Rachel Cutts, also stressed that the price locks provide certainty for trustees, “particularly during the current period of high market volatility”.

“We’re pleased to have been able to provide this certainty for the trustee and to complete a further transaction with the scheme, which is now on the final stretch of its de-risking journey,” she continued.

“We’re looking forward to working closely with the trustee to convert both policies to buyout and to our in-house administration team welcoming the scheme’s members as L&G policyholders.”

Newell Rubbermaid UK Pension Scheme chair of trustees, Steve Southern, added: “We are very pleased to have secured the recent buy-in with L&G. This transaction is a key step in our de-risking of the scheme and delivers a superb outcome for our members by providing greater security of their benefits.

“L&G were selected by the trustee following a highly competitive selection process. We are pleased with the results and the key support provided to the trustee by our advisors throughout this complex transaction.”

Adding to this, Aon Risk Settlement Group partner, John Baines, highlighted the transaction as evidence of the importance of “thorough preparation, with this being the culmination of many years’ work to better understand the scheme’s data and benefits and to de-risk the scheme’s asset portfolio”.

“We worked closely with the trustee and company to identify the most important areas of focus ahead of approaching the market, to be at the head of the queue to transact right at the start of what promises to be an unprecedented year in the bulk annuity market,” he added.

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