The Cognitronics Limited Pension and Life Assurance Scheme has secured a £1.7m buy-in with Aviva, covering the benefits of eight deferred members.
In the transaction, First Actuarial provided risk transfer consultancy and project management, PAN Trustees acted as trustee, and Wrigleys Solicitors served as the trustee's legal adviser.
Commenting on the agreement, PAN Trustees managing partner, Charles Goddard, said: “With a moderate surplus, we were keen to go to market and assess the viability of a buy-in. We wanted to get the best possible deal for our members and sponsor.
“Our 10 pensioners were insured from retirement onwards, leaving a small group of deferred members.
“We selected First Actuarial because we were aware that their risk transfer team specialise in smaller transactions. They helped us achieve a buy-in with favourable terms.”
First Actuarial revealed that an initial insurance quotation exceeded its target price for the buy-in, prompting the adviser to approach Aviva, which had recently launched a fast-track process.
First Actuarial partner and head of risk transfer, Declan Keohane, said the team had to be "agile", particularly after changing course midway through the project.
“Aviva’s fast-track process meant that all the data preparation work had to be carried out before the buy-in. But we all worked efficiently together, while safeguarding quality,” he added.
According to Aviva bulk purchase annuity deal manager, Arpan Shah, Aviva’s fast-track process was launched “to make it easier for well-prepared schemes to access the security and certainty of a bulk annuity transaction”.
“In this case, the collaborative approach taken by all parties, combined with early data preparation, enabled the scheme to move quickly, while maintaining a strong focus on member outcomes,” he noted.
First Actuarial added that because data cleansing was completed early, the scheme is now set to move to buyout with Aviva.
