Bayer Group Pension Plan, Bristol, England, agreed to a £280 million ($338.8 million) buy-in with Canada Life Ltd., the two organizations said in a release Oct. 27.
The plan's first such transaction covers 40% of benefits being paid to retirees. The agreement also creates an umbrella contract that enables trustees "to potentially insure further liabilities efficiently if and when further opportunities arise," the release said.
As of March 31, 2022, the Bayer Group plan had £1.78 billion in assets, the most recently-released data.
The transaction was a collaboration between plan trustees, sponsoring employer Bayer Plc and parent company Bayer AG, and was led by consultant Lane Clark & Peacock.
Isio provided advice to Bayer Plc. Legal advice was provided to the trustee by CMS and to Canada Life by Eversheds Sutherland.
Chris Martin, chairman of Independent Governance Group, the plan trustee, said in the release that the transaction "represents a significant milestone in the plan's journey."