CMS advises Balfour Beatty Pension Fund Trustee on £1.7bn longevity transaction

International law firm CMS has advised the Trustee of Balfour Beatty Pension Fund (the Trustee) in relation to its £1.7 billion longevity transaction with SCOR and Zurich Assurance.

CMS advised on all legal aspects of the transaction, which will protect the Balfour Beatty Pension Fund against the risk of costs rising from pensioner members and their dependants living longer than expected.

CMS Pensions partner James Parker commented: “We are delighted to have advised the Trustee on this transaction. We were able to work very closely with both the Trustee and their actuarial adviser, Aon, to secure a very positive outcome for the scheme members.”

Tom Scott, partner at Aon, added: “We were pleased to support the Trustee with the successful execution of this transaction, which marks a further step in the fund’s de-risking journey. The transaction is further evidence of a vibrant insurance/reinsurance market which is offering commercially attractive pricing and terms to pension schemes.”

The CMS team was led by James Parker, with support from Katherine Harnett, Harriet Dammone and Alice Carter (Pensions); Alex Kalinowska, James Geer, Richard Ham, Blaine Cartin, Ellie Spare and Ali Siddiqui (Finance); Loretta Pugh (Tech & Media); and Sam Dames (Tax).

Zurich was advised by Pinsent Masons.

This latest transaction is another great example of CMS’s market leading reputation in acting for pension schemes in de-risking transactions. In 2021, CMS advised on 23 de-risking transactions with a combined value of more than £15bn.  Most recently, the team advised Trustee of the WH Smith Pension Trust on a £1bn residual risks buy-in with Standard Life and the Trustee of De La Rue Pension Scheme in relation to its £320m buy-in with Scottish Widows.