A £30m bulk annuity transaction for the British Red Cross Pension Fund and the Scottish Branch, British Red Cross Society Retirement Benefits Scheme has been completed with BW providing support for the trustees of both schemes.
Aviva will insure the defined benefit liabilities for around 360 members across both schemes, removing the investment and longevity risk of these members.
The trustees of the schemes were advised throughout the tender process by Barnett Waddingham LLP, with Womble Bond Dickinson providing legal advice.
"Supporting charities like the British Red Cross Society is highly rewarding, and this bulk annuity transaction marks a significant achievement for the members."
Keith Jecks, Chair of Trustees for the British Red Cross pension funds, said: “It gives me great satisfaction that we have now achieved the trustees’ long-term goal of securing the benefits of our members through Aviva. We are grateful for the support provided to us by Barnett Waddingham over many years, including as lead adviser for the transaction, and for the constructive engagement of the British Red Cross throughout the process.”
Steve Hitchiner, Partner at Barnett Waddingham, said: “Supporting charities like the British Red Cross Society is highly rewarding, and this bulk annuity transaction marks a significant achievement for the members. We are pleased to have guided the trustees throughout this journey, successfully completing the process in a busy bulk annuity market. Our sincere thanks go to the trustees, the society and Aviva for their collaborative efforts, which have been crucial in achieving this positive outcome.”
Members will see no change in their benefit entitlement as a result of the transaction.
Jamie Cole, Head of Bulk Purchase Annuity Origination at Aviva, added: “We are delighted that the trustees of the schemes chose Aviva to secure member benefits. Aviva and the British Red Cross have a long heritage, and we have supported the important work they do in building more resilient communities since 2016. We look forward to our relationship continuing as we welcome the scheme members following the buyout."
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