The Ashwal Garage section of the Motor Industry Pension Plan has completed a bulk annuity deal with Aviva.

A £1.5m buy-in was completed in 2020 and a buyout was finalised earlier this year, allowing the scheme to proceed to wind up.

The deal covered all 18 members of the Ashwal Garage section of the scheme, including deferred and pensioner members.

The trustee was advised through the process by Broadstone Pensions Limited.

Preparation was “crucial” to the deal proceeding, according to the trustee, with the ability to prove to insurers that the scheme was transaction-ready being “vital” due to its size.

Therefore, early preparatory work was completed on data, benefits and asset strategy before approaching the insurance market.

Commenting on the announcement, Entrust trustee director, Stuart Evans, said: ‘‘We are delighted to have completed this transaction with Aviva to secure our scheme’s liabilities, achieving certainty for our members. 

“We were concerned that it may prove difficult to source a bulk annuity for a transaction of this size. Preparation and the help of our advisers and Aviva helped overcome that obstacle.”

Aviva head of bulk purchase annuity origination, Jamie Cole, noted: "We’re committed to supporting schemes of all sizes achieve their goals. 

“Thanks to a well-managed process and significant upfront preparation by the scheme, we were delighted to help the Ashwal Garage section of the Motor Industry Pension Plan secure attractive commercial terms, transact quickly and help finalise the wind-up of the section.”

Broadstone director of consultancy and actuarial, Nigel Jones, added: ‘We’re really pleased to see this transaction take place. Most notably, it is encouraging that Aviva are keen to assist schemes of all sizes secure their benefits. 

“Our new SM&RT Insure process is built around helping all sizes of scheme prepare for the insurance market and demonstrate to insurers that they are transaction ready.”

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