Homestyle pension scheme completes £103m bulk purchase annuity deal

The Homestyle 2007 Pension Scheme has completed a £103m bulk purchase annuity transaction with Aviva, insuring the defined benefit (DB) pension liabilities of all 1,294 members.

The process was led by EY on behalf of Homestyle Pension Company, the sponsoring employer of the scheme, who also received legal advice from Addleshaw Goddard.

BESTrustees meanwhile, who acted as an independent trustee to the scheme, received advice from Isio and legal services from Squire Patton Boggs.

The transaction will remove the investment and longevity risk of the members from the scheme, whilst also ensuring no change to members benefits or the way in which they are paid.

EY-Parthenon partner, Taylor Dewar, highlighted the transaction as a “positive outcome” for both the scheme members and sponsoring employer.

“We are particularly pleased to have been able to move quickly to complete this transaction, giving our client confidence in the transaction in turbulent markets,” he added.

Commenting on the deal, BESTrustees director and chair of trustee for the scheme, Rachel Tranter, said: “I am really pleased we’ve been able to complete this transaction, which materially improves the security for all members of the pension scheme.

“The transaction required all parties to work collaboratively and at speed to take advantage of attractive pricing in the market.

“It was a great team effort and I am delighted that we’ve been able to bring some welcome news to the scheme members.”

Aviva head of bulk purchase annuity origination, Jamie Cole, added: “We are delighted to have worked with the trustee of the scheme to complete this transaction which brings security for their pension scheme members.

“All parties have worked well to deliver a smooth transaction, with close collaboration and pre-agreed terms helping deliver a positive outcome.”

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