Legal & General (LSE:LGEN) has signed a landmark agreement to assume £4.6 billion ($6 billion) in pension liabilities from Ford Motor Company (NYSE:F), according to a report from the Financial Times citing executives from both firms.
The deal covers the pension benefits of approximately 35,000 members enrolled in two of Ford’s UK schemes — the Ford Hourly Paid Contributory Pension Fund and the Ford Salaried Contributory Pension Fund.
This is among the largest pension risk transfer transactions ever executed in the UK, reflecting a growing trend among corporations to offload long-term pension obligations to insurers with dedicated expertise in managing such liabilities.
For Ford, the agreement provides balance sheet relief by removing a significant financial burden, while ensuring the security of retirement benefits for tens of thousands of employees and retirees.
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