The Wood Pension Plan, for troubled oilfield services firm Wood Group, has completed a £1.65bn full buy-in covering 16,400 members. 

Wood's pension trustees said earlier this year that they were exploring the option of a buy-in. This was as the lossmaking sponsor was in takeover discussions with Dubai-based Sidara, and being fined £13m for making inaccurate statements in its accounts.
 
The scheme was 106% funded at its last full valuation in 2023, estimated to have risen to 110% in 2025. The trustees have now chosen Legal & General, with L&G saying that member experience was a key factor in the decision.

“The trustee’s objectives in approaching the market were to secure excellent value for money and to ensure that the outstanding service we provide to members through the Wood Pensions team would continue into the long-term future. In L&G, we are confident that we have selected a partner that fully meets our objectives, while also sharing our values and commitment to member service and experience," said trustee chair Mervyn Walker. 

Elaine Hanna, head of global retirement at Wood Group, said: “The completion of this buy-in is an important step in securing the long-term future of the Wood Pension Plan. It provides greater certainty for our members while significantly reducing pension risk for Wood.”  

Gareth Mee, chief executive of Institutional Retirement at L&G, said as the market continues to grow, the firm's focus is "on using our scale and capabilities selectively to support high-quality transactions that deliver lasting value for schemes and their members”. 

The transaction was advised by LCP, and Gowling WLG gave legal advice to the trustees. Wood Group had input from law firm Pinsent Masons, while L&G was advised by CMS. 

LCP partner Clive Wellsteed said there had been "strong insurer engagement and competition on price, alongside tailored solutions to address the non-price features that mattered most to the trustee and members". 

L&G is one of the pension risk transfer providers that has previously taken on large defined benefit schemes, along with Rothesay and Pension Insurance Corporation. However, competition for these schemes is likely to increase as many mid-sized ones have already derisked. Last month, Standard Life revealed that it has partnered with a consortium of investors to target large and complex defined benefit schemes. 

L&G's emphasis on member experience comes after the Pensions Ombudsman recently awarded an unusual £2,000 in compensation to a member of the London Stock Exchange Group Pension Plan, run by L&G, who wanted to start flexi-access drawdown. The provider's errors, over several months, included wrongly paying the member a lump sum that had to be repaid and triggered a tax charge, confusion about retirement options, known issues with the online portal, and sending information meant for a different member. L&G unsuccessfully pleaded that its payment should be limited to £1,000.