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CMS advises Deutsche Bank Pension Scheme Trustee on strategic £570m buy-in

16 February 2021

International law firm CMS has advised the Trustee of the DB (UK) Pension Scheme (the Scheme) in relation to a £570 million pensioner buy-in transaction with Legal & General Assurance Society Limited (Legal & General). The Scheme is sponsored by a subsidiary of Deutsche Bank AG (the Bank), has assets of c. £4.5bn and has a funding surplus. 

CMS was appointed as transaction counsel to advise specifically on this strategic transaction. The buy-in represents the first step on the Scheme’s de-risking strategy of reaching full insurance over the medium term. This transaction was completed under an “umbrella contract” which allows future transactions with Legal & General to be completed quickly and easily on pre-agreed terms when favourable pricing opportunities arise.  

James Parker, CMS Pensions partner, comments: “We are delighted to have assisted the Trustee in bringing this first transaction in the Scheme’s de-risking strategy to a successful close. It was a truly collaborative exercise between all parties and their respective advisers on what was a complex and significant transaction.”

Michael Wrobel, Chair of the Trustee Board, DB (UK) Pension Scheme, says: “We are very pleased to conclude this first buy-in. It is a significant step on our de-risking journey and the excellent outcome with Legal & General reflects the expertise and collaborative approach of our advisers and our close working relationship with the Bank. It establishes a strong platform for future de-risking of the Scheme.”

The CMS team was led by James Parker and supported by Maria Rodia, Thibault Jeakings, Tom Bates and India Trusselle.

The CMS Pensions team has had a raft of successes in the pensions de-risking arena over the past 18 months, acting on eight out of the 10 buy-in/out deals over £1bn in 2019, six out of the eight longevity swap conversions that have taken place to date, and many of the large-scale longevity swaps in the market including advising Pacific Life Re on the £10bn transaction with the Lloyds Banking Group pension scheme, the conversion of LV=’s £800m longevity swap into a buy-in with Phoenix Life, the conversion of the MNOPF’s £1.6bn longevity swap into a buy-in with Pension Insurance Corporation and acting for a FTSE100 trustee on the first “Enhanced Pass-Through” transaction with Zurich and Hannover Re, covering approximately £800m of pensioner liabilities.

CMS has also been recognised as Law Firm of the Year at the UK Pension and Investment Provider Awards 2020 and Pensions Lawyers of the Year at the Professional Pensions UK Pensions Awards 2020. CMS was also named the top firm for Supporting Development at the Professional Pensions Rising Star Awards 2020, where the firm was commended for its well-rounded approach to the professional development of its lawyers.