The Terex Pension Scheme has secured a buy-in with Aviva.
The deal secures the benefits of 341 pensioners and 271 deferred members and means all members across the three fully segregated sections of the scheme are now insured. The deal follows a previous partial buy-in with Aviva in 2019.
The transaction was completed "within a short timeframe" due to market pricing proving more attractive than expected. Funding volatility was minimised due to "attractive" terms being agreed with Aviva that were closely aligned to the scheme's matching asset portfolio.
K3 led the transaction, while Aon provided actuarial, investment and administration advice. Insurer covenant advice was provided by BDO and Burness Paull acted as legal counsel.
Trustee director (of Trustee Solutions, a wholly-owned subsidiary of Pinsent Masons) Cameron McCulloch 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."
Aviva bulk purchase annuity (BPA) deal manager Arpan Shah added: "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."
K3 senior actuarial consultant Thomas Crawshaw said: "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."
This is the latest BPA transaction Aviva has completed in recent months, following a £112m buy-in deal with the Cameron McKenna Final Salary and NN Pension Schemes, an £11m buy-in with the DAC Retirement Benefits Scheme, and its £1.7bn buy-in deal with National Grid.
