On the go: The Shepherd Foods (London) Limited defined benefit pension scheme has completed a £3m buyout with Aviva Group.
The deal, which was completed on February 25, secures the benefits of 11 deferred members and two pensioner members.
Prior to the buyout, which was advised by K3 Advisory, the majority of the scheme’s assets were invested in a deferred annuity contract with Aviva, which guaranteed annuity rates for some of its members. The rest of the scheme’s assets were in cash.
Sole independent trustee Lyndon Jones said the scheme can “now move on to the final stages of the scheme’s derisking journey”.
He commented: “This is a great result for all parties concerned, and it’s particularly rewarding to have been able to present an attractive deal to the sponsoring employer to secure the members’ benefits.”
Thomas Crawshaw, senior actuarial consultant and transaction lead at K3 Advisory, noted that “the Shepherd family were keen to complete the next phase in their derisking journey”.
He said that the scheme was able to secure the benefits for the remaining scheme members at an opportunistic time in the market.
Legal advice to the trustee was provided by Shoosmiths.
This article originally appeared on Mandatewire.com
