Uniac Pension Fund, London, agreed to a buy-in with Legal & General Group to insure £129 million ($208.5 million) of liabilities.
The pension fund is a Section 615 arrangement, which allows U.K. companies to establish pension funds for employees outside the U.K. The buy-in does not affect sponsoring company Unilever’s other pension funds, and is the largest buy-in to date for a Section 615 pension fund, said a news release from Lane Clark & Peacock, lead adviser on the deal.
“The Uniac Pension Fund is a mature pension scheme, and this transaction is a central part of our strategy to simplify the scheme and align a significant portion of our asset and liabilities,” said Lyn Williams, chairman of trustees of the Uniac Pension Fund, in the news release.”
Linklaters law firm provided legal advice.
Executives and spokesmen at the pension fund and sponsoring employer could not be reached for comment by press time.