British Steel Pension Scheme, Glasgow, Scotland, insured £2.7 billion ($3.4 billion) in liabilities through a buy-in with Legal & General Assurance Society, securing a buyout, according to a news release.

The latest deal, which was the plan’s fourth risk transfer deal since November 2021, covered the remaining 40% of liabilities and the benefits of all 67,000 plan participants.

In 2017, the British Steel Pension Scheme was restructured after its plan sponsor, Tata Steel U.K., experienced financial difficulty.

“Since the new scheme was established, the trustee’s overall objective has been to reach full funding on a solvency or ‘buyout’ basis,” Keith Greenfield, chairman and independent trustee director of the £7.5 billion pension fund, said in the release.

“Firstly, it provides members with the greatest possible comfort that benefits will be paid in full as and when they fall due. Secondly, achieving this objective allows us to make additional payments to members under the agreement reached when the new BSPS was set up,” he added.

The trustees were advised on the insurance strategy and execution of all four buy-in transactions by consultant Lane Clark & Peacock. Legal advice was provided by law firm Travers Smith.

The sponsoring employer was advised on the transactions by Mercer and Slaughter and May. CMS Cameron McKenna Nabarro Olswang LLP provided legal advice to Legal & General.

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