The Terex Pension Scheme has completed a buy-in with Aviva, securing the benefits of all remaining members across three fully segregated sections of the scheme, following a partial pensioner buy-in in 2019.

The buy-in, led by K3 Advisory, covers the benefits of 341 pensioners and 271 deferred members.

Aon provided actuarial, investment and administration advice, while BDO provided insurer covenant advice, and Burness Paull acted as legal counsel.

According to K3 Advisory, market pricing proved significantly more attractive than the scheme had previously expected, allowing the deal to progress within a short timeframe.

This helped minimise funding volatility ahead of the transaction, despite turbulent market conditions, the firm added.

With support from their advisers, the trustee and sponsor also implemented a plan to fund the transaction while awaiting the redemption of certain illiquid assets.

Trustee Solutions Limited director, Cameron McCulloch, said securing the benefits for all remaining members of the scheme was a “significant milestone”.

“The strong collaborative approach taken by all parties ensured a smooth and swift transaction, despite some challenging market dynamics and scheme-specific benefit complexities,” he added.

Aviva BPA deal manager, Arpan Shah, also commented on the transaction: “We’re really pleased to have worked with the Terex Pension Scheme once again to deliver a successful outcome for its members.

"This is further evidence of how we’re committed to developing existing relationships and highlights the strength of preparation and collaboration between all stakeholders as well as Aviva’s continued commitment to supporting schemes of all sizes”.

K3 Advisory senior actuarial consultant, Thomas Crawshaw, added: “It’s been rewarding to see the culmination of a long-term strategy that began with the earlier buy-in. By leveraging strong market engagement, we were able to deliver a highly attractive outcome that locks in long-term security for members”.

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