MF Global U.K. Pension Fund, London, entered into a £52 million ($84 million) pension annuity buyout contract with Pension Insurance Corp., confirmed Chris Martin, managing director of Independent Trustee Services, which is serving as professional trustee to the pension fund.
The buyout transaction was completed on Tuesday and covers all participants in the plan. The pension fund stopped accumulating assets after MF Global Holdings filed for bankruptcy in October 2011.
The pension fund was “significantly underfunded on a buyout basis,” according to a news release from Lane Clark & Peacock, which advised ITS in the deal.
Mr. Martin said settlement negotiations with KPMG, which is serving as special administrator of MF Global U.K., resulted in an injection of additional assets into the plan to help make the buyout deal possible.
Law firm Pinset Masons also advised the pension trustees on the transaction.