Sackers advises the Trustee on £1 billion longevity swap for Carillion pension schemes

11 Dec, 2013

Sackers acted as the sole law firm advising Carillion (DB) Pension Trustee Limited (the “Trustee”) on entering into longevity swap contracts for five pension schemes covering approximately 9,000 pensioners with Deutsche Bank as the counterparty.

The deal is unique as it required the simultaneous execution of the five longevity swap contracts with the pension schemes ranging in size from approximately £40m to £400m. It will provide protection against life expectancy increases for approximately 9,000 pensioners with a liability of about £1 billion.

Robin Herzberg, Chair of the Longevity Committee at Carillion said: “This is a complex deal, and Sackers have provided clear and practical advice throughout the process to help us complete this good deal for the schemes and the members.”

Paul Phillips, Partner and Head of Sackers’ Finance and Investment Group, led the Sackers’ team with Senior Associate Ian D’Costa advising on the swap elements and Senior Associate Ralph McClelland advising on the custody and collateral management aspects.

Paul said: “We have been able to draw on our extensive experience in the de-risking arena and of previous longevity swaps in taking this complex and challenging deal to completion.  We were pleased to have assisted the Trustee in putting in place this landmark longevity swap transaction.”

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