Avon Cosmetics has secured its defined benefit (DB) pension scheme through a £235m buy-in with M&G.
The transaction insures the benefits of more than 3,000 members of the Avon Cosmetics Pension Plan, sponsored by the global beauty products company. The buy-in involves support for a “complex benefit structure”, according to M&G.
WTW advised on the transaction, while CMS provided legal advice to the trustee board.
Gemma Millington, senior director at WTW, said: “The trustees were focused on ensuring the buy-in achieved an optimal outcome for members, including the preservation of all member options and coverage of complex plan benefits.
“We’re seeing strong market competition delivering attractive pricing and pushing insurers to continually improve member experience.”
Michelle Parczuk, chair of the trustee board and chief people officer at Avon, added: “This buy-in helps to provide greater certainty to members about the security of their benefits and represents a pivotal moment in the plan’s de-risking journey. My thanks to everyone involved for a great team effort in making this happen.”
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