Well this is nice news
1) It means that L & G are convinced that there will be a long revenue stream, to match their liabilities to people who have pension/annuities with them. So someone has told them a story persuasive enough for them to put their money where their mouth is.
2) It locks in Leeds City Council to a very long-term perspective as well.
best of all ... any of us retiring some time soon now have the option of buying an L & G annuity, knowing that some of our annual membership fee will be going towards paying our own pension ... (probably about 3 pence, given the L & G portfolio).