The Interserve Pension Scheme has completed a £400m buy-in with Aviva, securing the benefits of more than 7,000 members.
The move follows a £300m pensioner-only buy-in in 2014 and means Aviva has now insured the pension liabilities for all Interserve section members, comprising 4,300 pensioners and a further 2,800 deferred members in a total deal of more than £700m. The total transaction includes a buy-in of the remaining members of the Interserve section accompanied by a reshaping of the existing buy-in policy.
Interserve Pension Scheme chair of trustees David Trapnell said: "We are pleased to have agreed a new solution with Aviva which provides security and certainty to more than 7,000 Scheme members. In order to best protect members' interests, it was crucial we acted to secure a long-term resolution and Aviva offered the best outcome. We would like to thank Aviva and our advisers who helped us get to this stage."
Aviva head of bulk Purchase Annuity Origination Jamie Cole added: "We've worked with the scheme for more than eight years, so naturally we're delighted to have been chosen to support them to complete their journey to eventual buyout.
This has been a complex transaction comprising a new buy-in, along with the restructuring of the existing buy-in. All parties have worked very closely to achieve this optimal outcome in a timely and efficient manner."
Aviva was selected following a competitive and thorough market process led by Lane Clark & Peacock (LCP).
The scheme trustees were independently advised throughout the process by LCP and Sackers, who provided legal advice. Tilbury Douglas Construction Limited (TDCL), previously part of the Interserve Group, was the sponsoring employer of the scheme. TDCL and Interserve Group were advised by PwC and Slaughter and May.
LCP partner Yadu Dashora commented: "This was an innovative transaction in many respects, due to the circumstances of the scheme. We are delighted to have been able to use our experience of restructuring cases to secure members' benefits with Aviva.
"It has been a pleasure working with a trustee board that clearly puts members interests first, rather than following the path of least resistance."
Sackers partner Faith Dickson said: "The buy-in with Aviva is the culmination of a huge team effort over the last few years, and we are pleased to have been involved in securing this positive outcome for members."
PwC pensions partner Atul del Tasso-Dhupelia added: "The buy-in transaction has been made possible through innovation and collaboration with the Interserve Group and its shareholders over a number of years. Without this, members would have been significantly worse off. We are delighted to have advised Interserve Group through this."
