Metal Box Pension Scheme’s £2.2 Billion Buyout With Pension Insurance Corporation

Sackers advised Crown Holdings, Mayer Brown and Willis Towers Watson advised the Trustees. PIC were advised by Herbert Smith and due diligence on the residual risk transfer was carried out by DLA.

The Metal Box Pension Scheme has agreed a £2.2bn buy-in to buy-out transaction with Pension Insurance Corporation (PIC) after slashing its journey plan by nearly 20 years.

Sackers is delighted to have advised the sponsor of the scheme, Crown Holdings on this £2.2bn buy-out transaction, the biggest bulk annuity deal of 2021 so far. The transaction insures 12,500 pensioner and deferred members of the Metal Box Pensions Scheme with PIC.

This transaction represents the culmination of a long period of planning and structuring to get the deal over the line. It included a number of innovative solutions to issues that can otherwise bog-down a large scheme buy-out, including GMP equalisation/conversion, residual risks cover and a funding structure between the company and pension scheme to manage the realisation of a portfolio of illiquid investments.

Sackers team included Stuart O’Brien (Picture), James Geer and Liam Goulding.

Involved fees earner: James Geer – Sackers; Liam Goulding – Sackers; Stuart O’Brien – Sackers;

Law Firms: Sackers;

Clients: Crown Holdings, Inc.;

Author: Giulia Di Palma