This is the second buy-in transaction between Aviva and the John Laing Pension Fund, following a £211 million transaction in December 2008. Aviva will insure the defined benefit pension liabilities for 1,850 current pensioners, taking responsibility for the investment and longevity risk of these members from the Fund. Members will see no change in the amount of their benefits or the way in which they are paid as a result of the transaction.
The process to select an insurer and negotiate terms was led by Willis Towers Watson. The trustee received legal advice from Linklaters, whilst Aviva received guidance from Eversheds Sutherland.
Jamie Cole, Head of Bulk Purchase Annuity Origination at Aviva, said: “We’re delighted to have again been able to help the Trustees provide greater security for their members. Thanks to the experienced and well-prepared teams on all sides we were able to complete a smooth and efficient transaction. We continue to see strong demand from schemes, and we’re committed to helping schemes of all sizes with their de-risking plans.”
Mike Clare, Chair of Trustees for the John Laing Pension Fund, said: “The Trustees have been focused on achieving the right long-term de-risking for the Fund. The Fund has had a strong relationship with Aviva since its 2008 buy-in and now was the right time to undertake a further buy-in. The buy-in is good news for member security and is a result of positive and successful collaboration between all those involved.”
Shelly Beard, Senior Director at Willis Towers Watson, said: “We were very pleased to help the Trustees to secure their second buy-in, extending their partnership with Aviva. This was an important de-risking step for the Fund and the Trustee benefited from a highly competitive pensioner buy-in market at the current time”
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