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Eversheds advises TRW Automotive on £2.5 billion pension buy-out

  • United Kingdom


    Law firm Eversheds award-winning pensions team, has advised TRW Automotive as its Pension Scheme undertook a landmark £2.5 billion partial pension buy-out by Legal & General’s Retirement (LGR) business, in what constitutes the largest pension buy-out in the UK to date.

    TRW Automotive ranks among the world's leading automotive suppliers. Headquartered in Livonia, Michigan, USA, the Company, through its subsidiaries, operates in 24 countries and employs approximately 65,000 people worldwide.

    In addition to the size of the deal, the arrangement also includes a number of innovative features. For example, a pension increase exchange offer was made to over 15,000 pensioner members as part of the buy-out process. These members were given the option to receive a higher level of pension income in place of inflation linked income, coupled with the promise of their pension being secured with Legal & General. 37% of the members who were offered the pension increase exchange accepted the offer.

    Not only is this the largest buy-out transaction, but it also incorporates a number of innovative elements that were included as part of an integrated, broader risk management strategy for the Scheme.

    The Eversheds team was led by Partner Ingrid Everson, with a team including Partners Francois Barker and Emma King and Principal Associates Lynette Lewis and Gavin Paul.

    This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full terms and conditions on our website.

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