London-headquartered insurer, Aviva has completed a £400 million buy-in of the Interserve Pension Scheme, securing the benefits of more than 7,000 members.
This buy-in follows a £300 million pensioner-only buy-in back in 2014 and means that Aviva has now insured the pension liabilities for all Interserve Section members, comprising 4,300 pensioners and a further 2,800 deferred members.
The total transaction included a buy-in of the remaining members of the Interserve Section accompanied by a reshaping of the existing buy-in policy.
According to the announcement, Aviva was selected following a “competitive and thorough” market process led by Lane Clark & Peacock (LCP).
The scheme trustees were independently advised throughout the process by LCP and Sackers who provided legal advice.
The construction firm went into administration in 2019, and since then most of its operations have been sold to the likes of Mitie, a rival outsourcing group.
Jamie Cole, Head of Bulk Purchase Annuity Origination at Aviva, commented: “We’ve worked with the Scheme for more than eight years, so naturally we’re delighted to have been chosen to support them to complete their journey to eventual buy-out.
“This has been a complex transaction comprising a new buy-in, along with the restructuring of the existing buy-in. All parties have worked very closely to achieve this optimal outcome in a timely and efficient manner.”
David Trapnell, Chair of Trustees, Interserve Pension Scheme, added: “We are pleased to have agreed a new solution with Aviva which provides security and certainty to more than 7,000 Scheme members.
“In order to best protect members’ interests, it was crucial we acted to secure a long-term resolution and Aviva offered the best outcome. We would like to thank Aviva and our advisers who helped us get to this stage.”