Linklaters advises M&S Pension Trustee on Bulk Annuity Insurance Policies
Linklaters has acted for the Trustee of the Marks and Spencer Pension Scheme on entering into two bulk annuity insurance policies with Phoenix Life and Pension Insurance Corporation, covering a total of £1.4bn of pensioner liabilities.
Together with the two policies secured in 2018, the Scheme has covered the longevity risk for approximately two-thirds of its pensioner liabilities. Total liabilities of the Scheme amount to approximately £10bn, and £1.5bn of these liabilities were secured in the 2018 transactions.
The PIC contract is structured as an umbrella contract which means that the Marks and Spencer Trustee will be able to enter into future transactions on the same terms in the future. The Phoenix transaction was carried out under the previous umbrella contract entered into in 2018.
Advising the Marks and Spencer Trustee on this transaction builds on Linklaters’ market leading experience in developing umbrella contracts for these types of policies, including carrying out a new Phoenix transaction under the existing umbrella structure. The main advantage of these types of contract is that they save time and cost in the longer term and provide a clear and transparent path for future transactions.
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