The Elementis Group Pension Scheme has completed a £300m buy-in with Aviva, securing the benefits of 4,500 members.

The deal, which was finalised in May, enables a subset of scheme members to access additional voluntary contributions as a primary source of tax-free cash though Aviva’s integrated DB&C Master Trust.

It also included a price lock, which allowed the scheme trustee to sell down credit fund holdings and transition into the premium payment portfolio.

Aviva said this helped to minimise mismatch risk while supporting pricing certainty throughout the process.

Aon acted as lead adviser to the trustee, while Squire Patton Boggs provided legal advice and Aptia acted as scheme administrator.

Aviva’s in-house team provided the insurer with legal advice on the transaction.

“Even with extensive planning and preparation, we had to overcome a number of challenges in our journey but our risk transfer advisory team at Aon were excellent and methodically guided the trustees through every step in the process, supported by all of the scheme's key advisers and Aptia as scheme administrator.,” said Elementis Group Pension Scheme secretary and trustee director, Wai Wong.

“Our focus now turns to the data validation phase and a comprehensive plan and strong project management will ensure we deliver for all our stakeholders.”

Elementis Group Pension Scheme trustee board chair, Brian Taylorson, said the scheme was delighted in its selection of Aviva to fully secure the defined benefits of its members and their dependents.

“This deal would not have been possible without the full support of our sponsor, Elementis plc, which was and remains strongly collaborative throughout this process,” he added.

Also commenting on the deal, Aviva senior BPA deal manager, Sean Rooney, said: “Completing this transaction with the Elementis Group Pension Scheme is a strong example of what can be achieved through close collaboration between parties and clear objectives.

“As part of this transaction, the trustee has the option to draw on Aviva’s expertise, alongside our specialist partners, to support completion of their data cleansing and verification activities.

“This provides certainty to the Scheme and its sponsor that, regardless of any scheme administration constraints, they can always rely on Aviva to ensure their preferred timescales for data cleanse are met, providing greater flexibility over the timing of any potential future buyout.”

Aon partner, Leah Evans, added: “The unusual liability profile of the scheme required in-depth considerations of scheme experience and cashflow profiles in order to complete a successful transaction.

“We worked closely with the trustee and Aviva to develop solutions both for the initial transaction and to support the trustees in the next stage of their journey.

“The trustees’ strong governance structure and engagement throughout the project, as well as the support by the sponsor, allowed for efficient decision making and was key to achieving a good outcome for the scheme and its members.”

This article was first published by our sister title, Pensions Age.

---