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Pension Risk Transfer

Bank of America completes buy-in for U.K. plan

Visitors pass a sign as they exit the Bank of America Merrill Lynch Financial Centre in London, U.K.

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.