Civil Aviation Authority Pension Scheme, London, completed a £1.6 billion ($2.5 billion) buy-in with Rothesay Life, said Paul Belok, a partner in Aon Hewitt’s risk settlement group, an adviser to the trustees.
The buy-in covers about two-thirds of the liabilities of the pension fund. Total assets of the pension fund are about £2.4 billion.
The deal is the largest pension derisking transaction to be completed so far in 2015, and the second-largest buy-in by a U.K. pension fund.
Mr. Belok added in an e-mail that there were no plans for further transactions at present.
“The trustee is delighted to have been able to achieve a significant reduction in the level of risk for the scheme and its members as a result of this transaction, which has been carried out in consultation” with the Civil Aviation Authority, said Joanna Matthews, independent chair of the Civil Aviation Authority Pension Scheme, in a statement from Rothesay Life.
The trustees also were advised by Reed Smith. Rothesay Life was advised by Wragge Lawrence Graham and Co.
Spokesmen for the Civil Aviation Authority could not be reached for comment by press time.