Mowlem (1993) Pension Scheme, Wolverhampton, England, agreed to a £150 million ($206 million) buyout with Legal & General Assurance Society.
The pension fund fell into the assessment period for the Pension Protection Fund, London, in 2018 following the insolvency of its sponsor, Sovereign Hospital Services. The firm was part of the Carillion Group.
The deal is a "PPF-plus" transaction, meaning the trustees have secured greater benefits than those that would have been provided by the PPF.
The plan has more than 360 deferred participants and 650 retirees.
"We are very pleased that we have been able to work so collaboratively with all parties involved in this transaction," said Chris Martin, executive chairman at Independent Trustee Services, the trustee for the pension fund, in a news release. "The support and collaboration of the PPF was also a key part of the process."
Mr. Martin separately confirmed the details of the deal.
The trustee was advised by Mercer. Sackers provided legal advice to the trustee, while Clifford Chance was legal adviser to L&G.
