LCP advises on £370 million buy-in between the TUI Group UK Pension Trust and Legal & General

Pensions & benefits Pension risk transfer LCP news

Imogen Cothay Partner

Imogen Cothay Partner

Contact Imogen

11 February 2025

Our media contacts

Lauren Keith
Head of External Relations
+44 (0) 203 922 1319

Email Lauren

Esther Musa
Senior PR Executive
+44 (0) 207 550 4661

Email Esther

Legal & General Assurance Society Limited (“Legal & General”) has completed a £370 million buy-in with the BAL section of the TUI Group UK Pension Trust (“the Scheme”), with LCP acting as the lead transaction adviser, offering both actuarial and investment guidance to the Trustee.

This buy-in, which was completed in late 2024, follows an initial £610m transaction in 2021 and now means all section benefits are fully secured.

The sponsoring employer, TUI UK (“the Sponsor”), is a leisure, travel, and tourism company.

Following the initial transaction, the Trustee worked collaboratively with Legal & General to monitor pricing for a period of 18 months and ensured they were in a position to react to favourable market conditions and transact at an opportune time. This ensured an efficient transaction while affordability remained attractive.

c£30m of the premium has also been deferred to allow the Scheme to run-off some illiquid assets and is payable over the next two years.

Overall, the Trustee has now completed three transactions with LCP, having also completed a £184 million full buy-in for the TAPS section of the Scheme.

Linklaters provided legal advice to the Trustee. Isio and Herbert Smith Freehills provided advice to the Sponsor, and Macfarlanes provided legal advice to Legal & General.

This latest transaction represents a significant milestone, with all members’ benefits in the section now insured in full. Having advised the Trustee since 2011, it has been a pleasure to support the Trustee in its collaboration with TUI UK to develop and implement a long-term plan for the Scheme, and to have seen this achieved so successfully.

Imogen Cothay Partner, LCP

Securing the benefits for our members has been the aim of the Trustee for many years, and we are delighted to have achieved another successful transaction. This is a prime example of how collaboration between all parties can get the best outcome for members of the Scheme.

Mike Roberts PAN Trustees Partner, Chair of Trustee

Following a collaborative process working with the Trustee, we are pleased to have completed a further transaction in respect of the Trust as part of our de-risking journey. We have now worked to fully insure the liabilities of two Sections of the Trust which provides further security for both members and TUI.

Nick Dunk Group Pensions Manager, TUI

We are pleased that the Trustee has chosen to secure all section benefits with us. Working collaboratively with the Trustee, Sponsor and their advisors, we helped implement an efficient solution for the Scheme’s illiquid investments and now look forward to supporting the members over the long term.

Adrian Somerfield Director, Institutional Retirement, Legal & General

We are very pleased to have worked closely with the Trustee once again to successfully close a further pension risk transfer transaction with Legal & General which enhances the security of all members’ benefits in the BAL Section of the Trust, and delivers on the long-term strategic goals developed by the Trustee and TUI.

Carol Jones Consultant, Linklaters

A transaction of this complexity has required a problem solving mindset alongside robust analysis, as well as having a deep understanding of the key stakeholders.  We’re delighted to have supported TUI with our expertise in risk settlement and investment advice on the latest transaction for the Trust.

Karen Gainsford Partner, Isio

We're delighted to have helped on a transaction which secures such a favourable outcome for the Scheme and TUI.

Samantha Brown Managing Partner EPI, Herbert Smith Freehills