The Co-operative Pension Scheme (Pace) has entered into its fourth bulk annuity transaction of 2020, agreeing a £350m buy-in with Aviva.
The risk transfer deal will cover the benefits of 2,300 members and takes advantage of an umbrella contract with Aviva agreed as part of a £1bn transaction earlier this year.
The scheme had also completed separate £1bn and £400m buy-ins with Pension Insurance Corporation in February and April.
Trustee chairman Chris Martin, who is also executive chairman at Independent Trustee Services, said: "The trustee board is delighted to have been able to take this further step in enhancing the security of our members' benefits.
"The ability to transact this quickly and efficiently is testament to all of the hard work from our colleagues in the Co-op Pensions Department in getting Pace to a position where such security enhancing options are possible."
Aviva managing director of annuities and equity release Tom Ground added he was delighted the transaction had completed.
"All parties have been closely monitoring pricing, given that current market conditions presented potential opportunities for the scheme. The transaction was completed in under two weeks from start to finish, with the existing umbrella contract allowing the parties to transact smoothly and quickly."
In selecting the insurer and negotiating terms, the scheme was advised by Aon. Legal and investment advice was provided by Linklaters and Mercer respectively.
Aon risk settlement group principal consultant Tom Scott said: "By leverage the previous buy-in transaction with Aviva, we were able to capture a short-term pricing opportunity on behalf of the trustee. Swift execution was required in the circumstances, which was made possible by the scheme being well-prepared and having efficient and nimble governance processes in place."
Legal & General has agreed two bulk annuity deals worth £116.2m with UK- and US-based IHS Markit schemes.
After a bumper year, insurers are now facing a slower and smaller pipeline as schemes grapple with Covid-19, writes James Phillips.
The Leonardo Electronic Pension Scheme has concluded a £160m pensioner buy-in with Just Group in the scheme’s first risk transfer exercise.
The NG Bailey Scheme has agreed two pensioner buy-ins worth £66m with Just Group with support from K3 Advisory.
Size is important to make a bulk annuity deal stand out, but it is not the only factor, writes Gill Wadsworth.