The Hille Ergonom Pension Scheme has wound up following a £4m buyout with Aviva, which resulted in a refund from the insurer.
The transaction secured the benefits of 56 pensioners and 18 deferred members, who also benefitted from surplus assets.
Actuarial adviser and scheme administrator First Actuarial acted as risk transfer consultant and project manager.
Capital Cranfield was the professional sole trustee, while Walker Morris provided legal support.
First Actuarial led the initial buy-in process, obtaining a quotation from Aviva, while the path to buyout was “lengthy” as it was complicated by a GMP conversion exercise.
Despite this, the scheme proceeded to wind-up quickly once buyout was completed.
The completion of the deal resulted in a refund from Aviva, which covered all remaining project expenses and left a surplus.
This meant expenses were able to be reimbursed and some of the surplus was distributed to members.
“As scheme funding improved, the sponsor started to consider buyout of its well-funded legacy scheme, aiming to de-risk its balance sheet,” said First Actuarial risk transfer consultant, Chloe Davies.
“This was supported by the sponsor’s parent company, who remained involved and engaged throughout the entire process.
“As well as securing the benefits of 74 members, finalising the transaction resulted in a refund from Aviva. This was a real positive as it covered all remaining project expenses and even left a surplus.
“Capital Cranfield negotiated with the sponsor to reach a pragmatic solution, obtaining agreement for expenses to be reimbursed and for some surplus to be distributed to members.
“This allowed us to make welcome one-off payments to members just before Christmas 2025.”
Capital Cranfield sole trustee, Anthea Whitton, added: “A big thank you to the sponsoring company and all the advisers for working together to reach a successful outcome.
“I would like to express my particular thanks to Chloe Davies of First Actuarial for keeping us on track throughout the project and to Ruth Bamforth of Walker Morris for sensible and helpful legal solutions.
“We were delighted not only to secure the members’ benefits but also to provide them with additional benefits.”
