On the go: General Motors' Vauxhall Associated Companies Pension Fund has completed a £53m bulk annuity purchase with Aviva.
The defined benefit pension obligations of 1,392 scheme members will be insured through this transaction, which removes the investment and longevity risk of these members from the vehicle manufacturer scheme.
Jamie Cole, head of bulk purchase annuity origination at Aviva, said: "Aviva’s robust capital position and experience were important considerations for the trustees when selecting an insurer to secure member benefits."
The trustee of the scheme received legal advice from Eversheds Sutherland and CMS Cameron McKenna Nabarro Olswang.
Separately, the scheme's latest triennial actuarial valuation was due last year, after the 2017 valuation showed a funding level of 70.6 per cent, which corresponded to a shortfall of £15.5m. The scheme's sponsor agreed to a recovery plan, making payments until the end of 2023.
This article originally appeared on Mandatewire.com
