LCP advises on
£420 million full scheme buy-in of the Commonwealth Bank of Australia scheme with Legal & General

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LCP was lead advisor to the Commonwealth Bank of Australia (UK) Staff Benefits Scheme (“the Scheme”) on their c.£420m full scheme buy-in with Legal & General Assurance Society Ltd (“LGAS”). This transaction covers all of the Scheme’s defined benefit members (approximately 440 non-retired members and 740 retirees). It represents a significant step on its planned de-risking journey.  

The Scheme’s sole Trustee is Capital Cranfield Pension Trustees Limited. They were advised in the transaction by LCP, acting as specialist de-risking adviser, with CMS providing legal advice to the Trustee, and Mercer acting as administrator and Scheme Actuary.  

Tim Gilbert, Partner, LCP 

“We are delighted to have helped the Trustee achieve its objective of insuring the risks for all members in the Scheme.  In our role as specialist de-risking adviser, we helped the Trustee design an investment strategy that protected the Scheme against market movements alongside an effective plan for approaching the market which secured full benefits within the assets of the Scheme. 

The pandemic has led to a slightly quieter start to the year which has provided attractive opportunities for our clients with eight transactions over £100m completed so far this year.” 

Peter Thompson, Capital Cranfield Pension Trustees Limited 

“We are very pleased to have insured the pension benefits for all members of the defined benefit section of the Scheme, achieving our goal of providing members with long-term certainty. It is a testament to the expertise of our specialist advisers that we were able to achieve this excellent outcome.” 

Dominic Moret, Head of Origination and Execution, Legal & General Retirement Institutional 

“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.”