Unnamed pension scheme completes £9m buy-in with Aviva

An unnamed pension scheme of a US-listed medical devices company has completed a £9m full buy-in with Aviva.

As reported by our sister title, Pensions Age, the deal was completed on 30 June and covers 79 deferred and five pensioner members.

The scheme trustee was supported on the transaction by K3 Advisory and Cartwright.

K3 Advisory senior actuarial consultant and transaction lead, Thomas Crawshaw, said the firm’s objective has always been to support smaller schemes, helping the unnamed scheme gain traction in a “very busy” insurance market.

“By working with Cartwright to ensure that the scheme was ‘transaction ready’, we managed to secure two insurance quotes,” he continued.

“The pricing for both was realistic and competitive, which enabled us to secure the members’ benefits at no additional cost to the employer.

“Historically these kinds of deals have only been accessible to much larger schemes, so to achieve this result for a scheme of this size is very satisfying.”

Cartwright director, Tony Grist, added: “We have worked with the trustee for some time, and in 2018 they secured a buy-in for the pensioners at that time.

“The US-based parent then agreed to continue with regular contributions to the scheme with a view to moving towards the buy-in of the remaining members.

“In January this year additional cash was made available by the US parent if needed.

“However, having already prepared the scheme, we were able to move quickly and lock in the market gains and competitive insurance pricing at that time, thus securing the benefits at no additional cash cost to the employer. A great result and a clear win for the members, the trustee and the sponsor.”

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