John Laing Pension Fund completes £320m buy-in with Aviva

The John Laing Pension Fund has completed a £320m buy-in with Aviva, its second bulk annuity transaction with the insurer.

The deal will cover defined benefit (DB) pension liabilities for 1,850 current pensioners, with the insurer taking on the investment and longevity risk in a move Aviva said would not change the benefits or the way they are paid.

This is the second buy-in the scheme has completed with Aviva, after it secured a £211m deal in December 2008.

The process to select an insurer and negotiate terms was led by Willis Towers Watson.

Legal advice was provided to the trustee by Linklaters, while Eversheds Sutherland provided legal advice to Aviva.

“The trustees have been focused on achieving the right long-term de-risking for the fund,” said John Laing Pension Fund chair of trustees, Mike Clare. 

“The fund has had a strong relationship with Aviva since its 2008 buy-in and now was the right time to undertake a further buy-in.  

“The buy-in is good news for member security and is a result of positive and successful collaboration between all those involved.”

Aviva head of bulk purchase annuity origination, Jamie Cole, added: “We’re delighted to have again been able to help the trustees provide greater security for their members. 

“Thanks to the experienced and well-prepared teams on all sides we were able to complete a smooth and efficient transaction. 

“We continue to see strong demand from schemes, and we’re committed to helping schemes of all sizes with their de-risking plans.”

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