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UK Lexmark Pension Plan Secures
£46 Million Buy-In Deal with Help from Canada Life.
The Lexmark Pension Plan, based in Maidenhead, England, has successfully completed a £46 million ($57 million) full scheme buy-in with insurance firm Canada Life. This significant transaction secures the benefits of all 177 plan participants, including 93 retirees and 84 deferred participants112.Key Details.
Date of Completion: The deal was finalized in March 2024. Sponsor: The plan is sponsored by the U.K. division of Lexmark Holdings Inc, a U.S.-headquartered printer and image product manufacturer. Purpose: The buy-in enhances the security of members’ benefits and represents a strategic move for the pension plan. Transition: With increased benefit security, the plan looks forward to an orderly transition to Canada Life. Parent Company: Lexmark Holdings Inc. was acquired by a Chinese-led conglomerate for $3.6 billion in 2016. Investment Consultant: Broadstone played a crucial role as the investment consultant in this transaction. Legal Advice: Legal advice was provided by Osborne Clarke.The Lexmark Pension Plan intends to proceed toward full buyout and eventual wind-up.
Trustee Chair Richard Pells expressed confidence in the expertise of Broadstone, emphasizing the positive outcome achieved for plan members. This buy-in deal reflects the plan’s commitment to securing pension benefits while adapting to changing market dynamics. Canada Life’s competitive pricing and expertise in bulk annuity transactions contributed to the successful outcome. The plan joins a series of recent bulk annuity transactions by Canada Life, reinforcing its position in the insurance market.
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