Aviva completes £900m buy-in with Thomas Cook Pension Plan

Written by Adam Cadle

05/05/2023

Aviva has secured a £900m buy-in with the trustees of the Thomas Cook Pension Plan, providing benefits at or in excess of Pension Protection Fund (PPF) levels for the scheme’s 12,500 members.

The buy-in and eventual buyout is expected to result in a better outcome for the vast majority of members than they may have expected after the liquidation of Thomas Cook, with no members to see any reduction in benefits.

Having first entered a PPF assessment period on 23 September 2019 after the Thomas Cook ceased trading, members’ benefits were adjusted to PPF compensation levels with effect from this date.

The scheme is now expected to exit the PPF assessment period “soon”, with a buyout with Aviva expected to complete in the first half of 2025 once the plan has received all monies due to it from Thomas Cook's liquidation.

Aviva head of bulk purchase origination, Jamie Cole, also highlighted the deal as an “important step”, providing security for all members and an uplift in benefits for many.

“We’re delighted to support the trustees of the Thomas Cook Pension Plan with their objectives,” Cole continued. “The trustees' ambition is to complete the move to buy-out as soon as possible and we look forward to welcoming the plan members to Aviva once this is complete.”

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