The College of Law Pension and Assurance Scheme, Guildford, England, completed a £28 million ($36 million) buy-in with Aviva, said a spokeswoman for Hymans Robertson, the pension fund's consultant.
The £250 million plan has completed four buy-ins already, and this is the second with Aviva. The buy-ins insured a total £90 million.
This transaction covers participants that have retired since a buy-in conducted with Aviva in 2012. In the long term, the trustee of the pension fund is aiming for a full buyout, Hymans Robertson said in a news release.
“The trustees are delighted to have completed their fourth pensioner buy-in, taking another important step to materially reduce risk for the members of the scheme. Hymans Robertson used their significant experience to expertly guide us through this latest buy-in, enabling us to insure the balance of our current pensioner liabilities at a particularly attractive price,” Alan Humphreys, the pension fund's trustee, said in a news release.
James Mullins, partner and head of risk transfer solutions, Hymans Robertson, added in the release: "The strategy that the trustees have adopted of insuring their pensioners in groups over time as they retire, and when they can afford to do so, has become increasingly recognized as the optimal way of working to insure all benefits. We expect to see more pension schemes adopt this approach in future, with an increasing number of schemes now targeting buyout as their final destination.”
In addition to Hymans Robertson, Linklaters advised the College of Law Pension and Assurance Scheme on the transaction.