Aviva completes Meat & Livestock pension buy-in
by Gill Montia
Story link: Aviva completes Meat & Livestock pension buy-in
Aviva has completed a £150 million pension buy-in with the Trustee Board of the Meat and Livestock Commission Pension Scheme.
The agreement involves Aviva making payments to the scheme equivalent to pensions for over 900 pensioner and dependant members of the scheme, under a bulk-annuity deal.
Towers Watson, which advised the Trustee Board, explains: “Under a buy-in the pension fund remains responsible for paying the scheme benefits but the trustees invest in a liability-matching asset (an annuity policy) that covers the benefits of current pensioners.”
The contract with Aviva will therefore be held as an asset of the scheme.
Aviva UK life distribution director, Graham Boffey, comments: “Aviva has a broad and flexible approach to bulk purchase annuities and we’re delighted to have confirmed this significant buy-in.”
He adds: “This deal shows that bulk annuities continue to play an important role in the defined benefit risk management arena.”