Barnett & Hall Pension Scheme settles £21m buy-in with L&G

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Barnett & Hall Holdings Pension Scheme has completed a £21m buy-in with Legal & General, in a move showing the insurer’s continued appetite for smaller schemes.

The deal, which marks the scheme’s first pension risk transfer transaction with L&G, secures benefits for around 110 pension scheme members, of whom 105 are non-pensioner members.

BHH is a subsidiary of W&R Barnett, a group of international commodity trading, storage, agribusiness and industrial companies.

Declan Billington, chair of the scheme’s trustees, said: “The increased security means it is a great result for members, with the focused approach taken in collaboration with the company and advisers meaning we were able to engage with L&G in a busy market to provide us with a solution which met our objectives much sooner than expected.”

PwC UK acted as lead transaction adviser, while Pinsent Masons provided legal advice to the Trustee.

L&G prepares for changing demographics
Legal & General Retirement Institutional, which helps schemes settle their pension obligations on behalf of L&G, said its UK retirement annuity book stands at over £89bn as at 31 December 2021, of which over £28bn is invested in direct investments such as clean energy and affordable housing.

During a conference session organised by the Institute and Faculty of Actuaries on Wednesday, Adrian Somerfield, director at LGRI, outlined three issues with the wider economy and stressed the importance of using investment to help address them: ageing population, infrastructure and carbon.

“It won't be long until more people in the population are aged over 65 than those under 18. We don't have an economy set up to deal with that particularly well and this is an opportunity to reward the economy to work better for that.”

From an infrastructure perspective, Somerfield said the UK has “some quite old infrastructure and some old-fashioned thinking, which is stopping the growth of new innovative ideas, which we should break down and try and address so we can build new real assets which are working for the economy”.

On carbon, he highlighted L&G’s commitment to make all the new properties it offers carbon neutral. He added: “Connecting that with DB pensions, I think we all agree that pension is really a fundamental part of our social fabric in the UK.”

Does pension investing have a key role to play in adapting the economy?

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