Interserve pension plan agrees to buy-in with Aviva

The trustees of the Interserve Pension Scheme, Reading, England, have agreed to a buy-in with Aviva PLC to cover £300 million ($497.8 million) of pension liabilities, said a spokesman for the sponsoring employer, Interserve PLC.

The agreement hedges about 35% of total liabilities against fluctuating interest rates, inflation and mortality risk.

“This transaction represents a significant risk reduction step for the Interserve Pension Scheme, reducing funding volatility and providing additional protection for all our members’ benefits,” said David Trapnell, chairman of the trustee board, in a news release from Interserve.

The trustees of the £775 million defined benefit fund were advised by LCP, and legal advice was provided by Sacker & Partners.