LCP advises Trustee of Rotork Pension & Life Assurance Scheme on c.£80m pensioner buy-in with Aviva

3 November 2023

The Trustee of the Rotork Pension and Life Assurance Scheme (“the Scheme”) has entered into an £80m pensioner buy-in transaction with Aviva covering the pension benefits for 406 current pensioners and dependants in the Scheme.

The buy-in policy reduces the level of investment and longevity risk in the Scheme and enhances the security of all member’s benefits. The transaction was facilitated by a £20m contribution from Rotork Plc to the Scheme. Members will experience no change in the amount of benefits they receive or the way in which they are paid as a result of the deal.

LCP was appointed to the Trustee as a specialist de-risking adviser, acting as lead adviser for the transaction using their Streamlined Service. The Trustee was also advised by Barnett Waddingham and Gowling WLG.

Melanie Cusack, Zedra Governance Limited, Independent Chair of Trustee Board said: “This buy-in policy represents an important step in the Scheme’s journey and increases the security of the benefits of all our Scheme member’s benefits. The Trustee worked closely with Rotork throughout the process. With the support of our advisers, and after a detailed due diligence and selection exercise we chose Aviva as they were best able to meet the Trustee’s requirements.”

Tim Gilbert, Partner at LCP added: “We are delighted to have helped the Trustee execute this transaction through LCP’s Streamlined Service. Well-prepared schemes are still able to secure attractive terms for buy-ins. As the market is expected to get busier over the coming years it will be even more important for schemes to approach the market in the right way.”

Jamie Cole, Head of Bulk Purchase Annuities Origination at Aviva, said: “We are extremely pleased to have been selected as the Trustee’s preferred provider. All parties worked effectively on this transaction which supports the Scheme’s long-term ambition to manage risks and increases the security of member’s benefits.”

Source: Lane Clark & Peacock