On the go: The $3.1bn (£2.5bn) Coats UK Pension Scheme, which merged with the Brunel Holdings Pension Scheme and the Staveley Industries Retirement Benefits Scheme in 2018, has agreed a £350mn bulk annuity deal with insurer Aviva.
Aviva will insure the defined benefit pension liabilities for around 3,700 members, removing the investment and longevity risk associated with those members from the scheme.
The transaction was instigated by a joint working group of the scheme’s trustees and Coats Group management, with the ultimate aim of setting the scheme on a journey towards full insurance, according to Aviva.
The scheme’s trustee chair, Chris Martin, said: “We are delighted to have taken this further step in improving the security of members’ benefits.
“Aviva’s sustainability commitment, and its alignment with our beliefs, was a key factor in the selection of our buy-in partner.”
This article originally appeared on MandateWire.com
