Boots secures £4.8 billion full buy-in with Legal & General for pension scheme
Boots has struck a deal with Legal & General in which liabilities for its pension scheme will be switched to the insurance firm.
The health and beauty retailer, which is the trustee of the Boots pension scheme, has agreed a £4.8 billion buy-in policy with Legal & General. The buy-in insures all 53,000 members in the Boots Pension Scheme, making it the largest single transaction of its kind.
Boots said it had explored all options for the scheme but concluded that the transaction with Legal & General was the best way to safeguard members’ benefits against market uncertainty, improved life expectancies, and other risks.
Alan Baker on behalf of Law Debenture, as chair of trustee, Boots Pension Scheme, said: “This agreement with Legal & General gives added protection to our members’ long-term benefits by removing market uncertainty and other financial exposures.”
Sebastian James, senior vice president and managing director of Boots, added: “We are very pleased to have achieved the gold standard outcome for our pension scheme and to have fully secured the benefits of all members with a highly respected insurer. This will provide greater certainty to both the scheme members and to Boots, and is an excellent outcome for both parties.”