On the go: The Aviva Staff Pension Scheme has completed a £875m buy-in with Aviva that covers the defined benefit pension liabilities of 2,868 members.
This is the second bulk annuities transaction agreed between the two parties, after a £1.7bn buy-in completed in October 2019.
The scheme trustee was advised by Hymans Robertson and Linklaters.
Brian Bussell, chair of the trustee of the Aviva Staff Pension Scheme, noted that in addition to the existing longevity swap and buy-in, “this recent buy-in helps to further reduce the amount of longevity and investment risk within the scheme”.
Jamie Cole, head of bulk purchase annuity origination at Aviva, stressed that despite 2020 being a year of uncertainty for many, the insurer “consistently helped schemes to secure member benefits throughout and we’re pleased to now support the Aviva Staff Pension Scheme with the next stage of its derisking strategy”.
Michael Abramson, partner at Hymans Robertson, added that this transaction “is a prime example of how pension schemes that are well prepared can move nimbly to take advantage of derisking opportunities”, even in a turbulent year.
