Trustees of the Thomas Cook Pension Plan, Redhill, England, insured £900 million ($1.1 billion) in liabilities through a buy-in with Aviva.
The transaction will insure the pension liabilities of more than 12,500 participants in the pension plan of the defunct tour operator, according to an Aviva news release Friday.
The buy-in and eventual buyout will allow participants to receive benefits at or in excess of Pension Protection Fund compensation levels, the news release said.
Trusteeship and governance firm Vidett functions as the trustee of the pension plan for the liquidated company. Steve Southern, trustee director at the firm, said in the news release: "We're pleased to share this positive news with members, who we know have had a difficult time over the last few years following the unfortunate liquidation of Thomas Cook. The PPF provides a valuable safety net and a significant level of protection, but many members will now receive higher benefits than they might have expected because of the transaction with Aviva."
Actuarial and risk transfer consultant Barnett Waddingham assisted.
