Sydney Packett & Sons DB pension scheme completes £5m buyout with Aviva

The Sydney Packett & Sons defined benefit (DB) pension scheme has completed a £5m buyout with Aviva, securing the benefits of all eight members of the scheme.

Ahead of the transaction, the scheme received strategic advice from Western Pension Solutions, which also supported the scheme in conducting a member option exercise in order to make the deal more affordable.

The transaction was led by K3 Advisory, who highlighted the deal as evidence that “no scheme is too small” and emphasised the importance of preparation when approaching the insurance market.

“If the scheme is well prepared, and an efficient process such as ours is run, then small schemes continue to be very attractive to the insurance market,” explained K3 Advisory senior actuarial consultant and transaction lead, Thomas Crawshaw.

“Our advice to small schemes is to ensure that you are transaction ready now, so that you can make the most of market opportunities as and when they present themselves to you.

“Working alongside Western Pension Solutions, Shoosmiths, Isio and gcTrustees, ensured that the process was smooth and efficient, and that we were able to meet the company and trustee’s ultimate objectives.”

This was echoed by Avia, with its head of bulk purchase annuity origination, Jamie Cole, emphasising that the insurer is a "whole of market provider", and helps schemes of all sizes on their de-risking journey.

"This transaction demonstrates that smaller, well-prepared schemes can access attractive pricing when supported by an efficient process such as this one," he said.

gcTrustees director and sole trustee to the scheme, Adam Bushby, added: “We are delighted to have been able to lead this cost-effective solution to securing our members’ benefits into the future within just three months of our appointment as sole trustee, bringing to bear gcTrustees’ considerable transactional experience and project management skills.

“K3 Advisory, along with all the other parties involved, skilfully guided us through the process achieving a rapid and successful conclusion.”

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