An unnamed UK charity sector pension scheme has completed a £15m buy-in with Legal & General, covering the benefits of around 100 pensioners and 20 deferred members.

Hughes Price Walker led on the transaction, while Osborne Clarke acted as legal advisor.

Hughes Price Walker director, Ray Hughes, said that the deal, which completed in under six months, represents a "significant step" towards full buyout and delivers real value for both members and the sponsoring charity.

"The terms secured were attractive and affordable, enabling the trustees to eliminate substantial risk and future cost from the scheme," he continued.

"For the charity, this means greater financial certainty and the ability to concentrate more fully on its core charitable activities, while members gain the reassurance of long-term benefit security.

"Achieving this outcome so efficiently reflects the careful preparation of all parties and the benefit of experienced, specialist advice in a competitive market.”

L&G institutional retirement pension risk transfer director, Kai Hoffmann, added: “This transaction provided an excellent fit between the scheme’s objectives and our ability to deliver affordable terms using our flow proposition for smaller pension schemes.

"We are very pleased to have supported this charity sector scheme, allowing the Trustees to lock in security for members and remove future cost pressures from the sponsor. Working closely with Hughes Price Walker, we were able to complete the buy-in efficiently and set the scheme on a clear path towards full buyout.”

The deal comes after recent analysis on the broader status of defined benefit (DB) pension schemes in the charity sector, which suggested that many UK charities are now in a "strong" position to consider and target their endgame.

The analysis from Hymans Robertson revealed a 5 per cent increase in the average funding level of charities' DB pension schemes since 2024, with the combined reserves of the largest 40 charities in England & Wales that sponsor DB pension schemes now sitting at £49bn.

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