23 March 2017
International law firm Gowling WLG has advised the trustee of the PGL Pension Scheme in relation to its £1.2bn bulk annuity with Phoenix Life. The trade was the largest bulk annuity transaction of 2016 and the first conversion of an existing longevity swap into a bulk annuity.
The firm's risk transfer team advised the trustee, a long-standing client, on all legal aspects of the complex transaction, which delivered an excellent outcome for the Scheme and its beneficiaries.
The annuity terms were bespoke and the Gowling WLG team used its significant experience of advising on similar transactions to structure robust all risks cover which, when combined with a new collateral structure to back the annuity, provides substantial protection for the Scheme.
The bulk purchase annuity forms part of a wider framework under which the Trustee and the sponsoring employer and their respective advisers are continuing to work together to support further de-risking.
Gowling WLG partner Paul Feathers, who led the Gowling WLG team on the transaction said, "It was a pleasure to be involved in helping to deliver a positive outcome for the scheme and its beneficiaries through this complex and innovative transaction, the completion of which reflects the hard work of the stakeholders and their determination to think creatively to ensure the security of members' benefits.