Paper supplier, M-real Corporation has chosen Legal & General to buyout its UK Paper Employee Benefits scheme.
The transaction involves the transfer of approximately £180 million worth of assets and 2,000 scheme members. Legal & General will provide insurance for all current and future pension payments, including covering all data errors and scheme wind up risks, to allow M-real and its trustees a clean break from the pension scheme.
Simon Gadd, managing director of Legal & General’s annuities business, said: “The agreement means that M-real effectively removes the risk in relation to its pension scheme from its balance sheet.”
M-real was represented by Herbert Smith in the buyout process and the pension scheme trustees were represented by Blake Lapthorn Tarlo Lyons and advised by Mercer. Legal & General was assisted by ITM and Eversheds.