Chapelthorpe Plc Pension Fund has completed a £34m buy-in with Aviva, securing the benefits of the remaining 805 uninsured members in the scheme.

The deal covers all remaining uninsured members of the scheme, including 517 pensioners and 288 deferred members, and was completed in early December following an “intense period of preparation” to capitalise on recent funding level improvements.

Broadstone provided annuity broking, investment consulting, actuarial and administrative services to the trustees, while legal advice was provided by Osborne Clarke.

The scheme, which is sponsored by the International Fibres Group, will now proceed to full buyout and wind-up.

Commenting on the deal, Align Pensions chair of trustees, Darren Howarth, stated: “As soon as we were aware of the improvement in the scheme’s funding level, we knew we would need to move quickly to protect the position and engage proactively with insurers.

“We worked closely with the company, Broadstone and Osborne Clarke to make the most of this position to secure the benefits for our members. We look forward to working with Aviva to progress the scheme wind up.”

Broadstone consulting and actuarial director and scheme actuary, Nigel Jones, emphasised the importance of a well-co-ordinated approach by those involved in achieving maximum insurer engagement, highlighting the deal as a “great outcome” for members.

“We have helped to deliver a fantastic result for the trustees, company and members for a scheme where buyout was not really a consideration six months ago,” he said.

Adding to this, International Fibres Group director, Jan G Holmstrom, stated: “We’re really pleased that the trustees have been able to complete this transaction, and at a price that requires no additional contribution from the company.”

Aviva head of bulk purchase annuity origination, Jamie Cole, also highlighted the deal as a “well-run and smoothly executed transaction”.

“All parties have worked to a clear set of objectives – capitalising on the scheme’s funding position to secure member benefits and allowing the scheme to wind-up,” he stated.


This article first appeared on our sister title, Pensions Age.

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