Thomas Miller & Co scheme completes £140m buy-in with Aviva

Written by Adam Cadle

02/10/2024

Thomas Miller & Co Ltd Retirement Benefits Scheme has completed a £140m full-scheme buy-in with Aviva, covering all members of the scheme.

The transaction was led by LCP, which is also the scheme’s actuarial and investment consultant, while legal advice was provided by Reed Smith.

In the build up to the transaction, the trustee designed and implemented a strategy to target full funding using “significant” contributions from the employer, alongside “strong” investment returns to gradually reduce the risk in the scheme.

A joint buy-in committee was established in 2023 to manage the approach to insurers, with Aviva being selected following a competitive process.

The transaction removes any residual investment risk as well as the longevity risk for the scheme, and members will see no change in the amount of their benefits or the way in which they are paid.

Law Debenture director and chair of the trustee of the scheme, Daniel Barlow, commented: “The transaction went very smoothly as a result of the thorough preparation, strong governance and excellent collaboration between all stakeholders.

“This resulted in an extremely positive response from the market and has led to improved security for our members and greater certainty for the sponsoring employer.”

Also commenting on the deal, Aviva senior deal manager, Toby Holmes, said: “We are pleased to have been selected by the trustee to help Thomas Miller with this buy-in transaction.

“This transaction highlights the strength of the Aviva brand and provides further evidence of our commitment as a whole of market insurer.”

LCP partner, David Salter, “We are delighted to have advised the trustee on this transaction.

“It shows that, even in a busy market, well prepared schemes can present themselves in an attractive manner; achieve a high level of engagement from a range of insurers and therefore transact with attractive terms.”

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