Northern Bank completes pension buy-in with M&G

Northern Bank Pension Scheme, Belfast, Northern Ireland, completed a £286 million ($352 million) pension buy-in with M&G.

It was the second and final buy-in for the £1.25 billion pension fund, which in June 2015 completed a £680 million pension buy-in with Prudential. At the time, it was the year's largest buy-in or buyout transaction in the U.K., covering the liabilities of about 2,000 retirees.

The full buy-in was achieved several years earlier than expected, said Nicholas Chadha, a partner at PAN Trustees and pension fund trustee chair of the pension fund, in a Sept. 25 news release.

Trustees were advised by Willis Towers Watson as risk settlement adviser, and scheme actuary and secretary; Hymans Robertson as investment consultant; and Sackers and Burges Salmon as legal advisers. Legal advice was provided to Northern Bank by CMS, and to M&G by Hogan Lovells.

On Sept. 20, M&G said it was re-entering the bulk purchase annuity market with the Northern Bank transaction, and for one of its own pension fund, the M&G Group Pension Scheme. The £331 million buy-in transaction was insured by Prudential Assurance Co. Active plan participants could choose between continuing with defined benefit accrual in a different M&G group pension fund or being part of the bulk purchase transaction and joining a defined contribution plan, M&G said in a separate news release.

Aon served as risk settlement adviser and actuary, Hymans Robertson as investment adviser and Mayer Brown International as legal adviser to the M&G pension fund; while Eversheds Sutherland provided legal advice to M&G.