The Co-operative Pension Scheme (Pace) has completed a £1bn buy-in with Aviva, insuring the defined benefit pension liabilities of around 7,000 members.

The transaction is the first buy-in for the Co-op section of the scheme and forms part of the trustee’s de-risking strategy.

The bidding process was led by Aon on behalf of the trustee, who received legal advice from Linklaters and investment advice from Mercer.

Aviva UK Life CEO, Angela Darlington, said: “I’m delighted that Aviva has secured this significant deal with the Co-operative Pension Scheme. This is further evidence of the expertise we have in pension de-risking and our ability to support schemes of all sizes.

“With an ‘umbrella’ framework now in place, we look forward to potential further de-risking opportunities in the future.”

Pace trustee chair, Chris Martin, stated: “This buy-in further increases member security as part of the trustee’s long-term de-risking strategy, and is a real positive for scheme members, the trustee and the Co-op.

“It represents a huge amount of hard work from the Co-op pensions team and thanks go to our advisers, Aon, Linklaters and Mercer, for their roles throughout the process and their advice to the trustee.”

No changes are expected to members’ benefits or the way in which they are paid as a result of the deal.

Share Story: