The transaction secures the benefits of all remaining members across three fully segregated sections of the Scheme, following a partial pensioner buy-in with Aviva in 2019. It covers 341 pensioners and 271 deferred members. Aon provided actuarial, investment and administration advice, while BDO provided insurer covenant advice and Burness Paull acted as legal counsel.
Market pricing proved significantly more attractive than the Scheme had previously expected, allowing the deal to progress within a short timeframe. Attractive terms were agreed with Aviva, closely aligned to the Scheme’s matching asset portfolio. This helped minimise funding volatility ahead of transaction, despite turbulent market conditions. With support from their advisers, the Trustee and sponsor also implemented a plan to fund the transaction while awaiting the redemption of certain illiquid assets.
Cameron McCulloch, Director at Trustee Solutions Limited (a wholly-owned subsidiary of Pinsent Masons LLP), said: “Securing the benefits for all remaining members of the Scheme is a significant milestone. The strong collaborative approach taken by all parties ensured a smooth and swift transaction, despite some challenging market dynamics and Scheme-specific benefit complexities.”
Thomas Crawshaw, Senior Actuarial Consultant at K3, commented: “It’s been rewarding to see the culmination of a long-term strategy that began with the earlier buy-in. By leveraging strong market engagement, we were able to deliver a highly attractive outcome that locks in long-term security for members”.
Arpan Shah, BPA Deal Manager at Aviva, said: “We’re really pleased to have worked with the Terex Pension Scheme once again to deliver a successful outcome for its members. This is further evidence of how we’re committed to developing existing relationships and highlights the strength of preparation and collaboration between all stakeholders as well as Aviva’s continued commitment to supporting schemes of all sizes”.
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