The Rotork Pension & Life Assurance Scheme has agreed an £80m buy-in deal with Aviva, covering the pension benefits for 406 current pensioners and dependants in the scheme.

The deal was facilitated by a £20m contribution from the sponsoring employer, Rotork Plc, to the scheme.

Although members will experience no change in the amount of benefits they receive or the way in which they are paid as a result of the deal, the buy-in policy will reduce the level of investment and longevity risk in the scheme.

LCP was appointed as the trustee’s de-risking adviser, acting as lead adviser for the transaction using its streamlined service, with further advice also provided to the trustee by Barnett Waddingham and Gowling WLG.

Trustee board chair and Zedra Governance Limited client director, Melanie Cusack, highlighted the deal as an “important step” in the scheme’s journey, increasing the security of the benefits of all scheme member’s benefits.

“The trustee worked closely with Rotork throughout the process,” she continued. “With the support of our advisers, and after a detailed due diligence and selection exercise we chose Aviva as they were best able to meet the trustee’s requirements.”

Adding to this, LCP partner, Tim Gilbert, said: “We are delighted to have helped the trustee execute this transaction through LCP’s streamlined service.

“Well-prepared schemes are still able to secure attractive terms for buy-ins. As the market is expected to get busier over the coming years it will be even more important for schemes to approach the market in the right way.”

Aviva head of bulk purchase annuities origination, Jamie Cole, added: “We are extremely pleased to have been selected as the trustee’s preferred provider.

“All parties worked effectively on this transaction which supports the scheme’s long-term ambition to manage risks and increases the security of member’s benefits.”

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