On the go: The Co-operative Pension Scheme has completed a £1bn bulk purchase annuity transaction with Aviva.
The insurer will be responsible for the defined benefit pension liabilities of approximately 7,000 members, removing the investment and longevity risk from the scheme.
According to Chris Martin, executive chairman of Independent Trustee Services, the chair of the Co-operative Pension Scheme’s trustee: “This buy-in further increases member security as part of the trustee’s long-term derisking strategy, and is a real positive for scheme members, the trustee and the Co-op.”
Angela Darlington, chief executive of Aviva UK Life, said: “I’m delighted that Aviva has secured this significant deal with the Co-operative Pension Scheme.
“This is further evidence of the expertise we have in pension derisking and our ability to support schemes of all sizes. With an ‘umbrella’ framework now in place, we look forward to potential further derisking opportunities in the future.”
The bidding process was led by Aon on behalf of the trustee, which received legal advice from Linklaters and investment advice from Mercer.
