Aviva will insure the defined benefit pension liabilities for all members, removing the investment and longevity risk of these members from the scheme.
The scheme trustees were independently advised throughout the process by Barnett Waddingham and Jagger & Associates, and both Walkers Solicitors and CMS Cameron McKenna provided legal advice.
Jamie Cole, Head of Bulk Purchase Annuity Origination at Aviva, said: “We are delighted to have completed a full buy-out for the Musicians’ Union Permanent Officials and Staff Pension Fund. We worked closely with all parties to ensure a smooth and efficient completion. A transaction of this value demonstrates our appetite for schemes of all sizes.”
Keith Ames, Chair of Trustees for Musicians’ Union Permanent Officials and Staff Pension Fund, said: “We are delighted to have been able to secure our members’ benefits with Aviva, a critical step in the Fund’s journey. Despite our relatively small size as a pension scheme, Aviva worked well with our advisory team to achieve the transaction. Barnett Waddingham expertly led the transaction for the Trustees, supporting their role as actuary and administrator. We have also been supported by Jagger & Associates, Walkers Solicitors and CMS in helping us to achieve this outcome. We were very impressed with the expert knowledge of our advisory team and how well they all worked together to give the support to the Trustees so that we could make the ‘big decisions’ and navigate the challenges we faced.”
Naomi Pohl, General Secretary of the Musicians’ Union, said: “The Union is pleased to have supported the Fund in reaching this milestone step of securing member benefits with Aviva. This has also been a very important step to secure the longer term future of the Union - largely removing the risks associated with the Fund and controlling our expenditure.”
Jonathan Smart, Principal at Barnett Waddingham and Scheme Actuary to the Fund, added: “I’ve had the pleasure of working with the Trustees and the Union for around 8 years as Scheme Actuary, and am really pleased by the outcome they have been able to achieve for the Fund and its members. The collaborative nature between the Union and the Trustees has been incredibly important over the years, but particularly as we moved to, and through, the bulk annuity purchase. Our transaction team were able to capitalise on a market opportunity and support the annuity purchase in line with the Trustees’ wishes – demonstrating our strong relationship with Aviva.”
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