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L&G to support Commonwealth Bank of Australia UK scheme

The insurer’s assurance society confirmed it has agreed a £420m full scheme buy-in with the bank’s staff benefits scheme

Legal and General (L&G) has announced it has agreed to a £420m full scheme buy-in with the Commonwealth Bank of Australia’s staff benefits scheme.

The purchase represents all of the scheme’s defined benefit members, which includes 40 non-retired members and 740 retirees, and is another step on the insurer’s planned de-risking journey.

Currently, the scheme’s sole trustee is Capital Cranfield Pension Trustees Limited, who were advised during the transaction by LCP, with Slaughter and May providing further legal counsel.

For the last 12 years, the scheme has been a client of Legal and General Investment Management (LGIM), allowing them to efficiently lock pricing to their LGIM assets ahead of transacting.

Dominic Moret, head of origination and execution at L&G Retirement Institutional, said: “It was a great pleasure to work with the Trustee, the sponsor and their advisers on this transaction, after a longstanding investment management relationship.

“We are delighted to welcome the Commonwealth Bank of Australia’s scheme members to Legal & General as we support the Scheme in providing further certainty to them.”

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