Linklaters advise Trustee of the British American Tobacco UK Pension Fund on £3.4bn buy-in

Linklaters have advised the Trustee of the British American Tobacco UK Pension Fund on a £3.4bn buy-in for pensioner and deferred members of the Fund. The transaction is the third largest buy-in transaction announced to date.

Linklaters and Lane Clark & Peacock worked together to advise the Trustee on its agreement with Pension Insurance Corporation plc, under which the Trustee has reduced longevity and investment risk for the Fund, helping to improve the security of members’ benefits.

The deal was led by the firm’s partner and Global Head of the firm’s Pension Funds Practice, Claire Petheram and included managing associate Sarah Opie, as well as input from a range of specialist lawyers within Linklaters, including Insurance counsel, Lorna Tennent. 

The transaction follows a series of large buy-in and buy-out transactions for the practice, having recently advised the Rolls-Royce pensions fund on the record breaking £4.5bn buyout transaction with Legal & General which secured benefits for 33,000 members.