Bank of America Merrill Lynch U.K. Pension Plan, Darlington, England, has insured £400 million ($523 million) in pension liabilities through a buy-in with Scottish Widows, said John Baines, head of bulk annuities at Aon, adviser on the deal.
The transaction, announced April 16, marks £1.5 billion plan's first risk transfer deal and will cover all 915 pensioners in plan.
"This transaction allowed us to continue our program of derisking by securing a bulk annuity for pensioner members on favorable terms, which has led to an improvement in the funding position on the plan's long-term funding basis," Peter Gibbs, chairman of trustees of the Bank of America Merrill Lynch U.K. Pension Plan, said in a news release.
The plan's funding level was 109% as of Dec. 31, 2017, the most recent data available.
Linklaters LLP provided legal advice to the plan.
