TI Group Pension Scheme completes buy-in with Aviva

TI Group Pension Scheme, London, completed a £142 million ($183 million) buy-in with Aviva, sponsoring employer Smiths Group said in its annual report.

The deal covers about 1,200 participants and is the sixth bulk annuity transaction for the pension fund and the ninth for Smiths' U.K. pension funds, which had a total £4.2 billion in assets as of July 31.

The report, published Thursday, said the sponsoring employer has now covered about 65% of retirement-related liabilities with bulk annuities.

The deal was completed Sept. 10, according to the report.

"This is our sixth annuity tranche, continuing a well-established derisking strategy for the scheme," Chris Surch, chairman of the trustees of the TI Group Pension Scheme, said in an Aviva news release. "I am pleased that this was swiftly concluded when the opportunity arose, thanks to the dedication of our trustees, Smiths Group, our advisers and Aviva — all working as efficiently remotely as they had been when office-based."

Consultant Aon led the process to select an insurer and negotiate terms of the deal.

The TI Group Pension Scheme has covered about 50% of liabilities with matching annuities, the report said. The pension fund has also adopted a liability-driven investment strategy to hedge interest and inflation risks.