Interserve, a construction firm that went into administration in 2019, has completed a £400 million buy-in for its pension scheme members.
The transaction was conducted with provider Aviva, and secured the benefits of more than 7,000 scheme members and follows a £300 million pensioner-only buy-in that took place in 2014.
Aviva insured the pension liabilities for all of the Interserve Section members, comprising 4,300 pensioners and a further 2,800 deferred members. The total deal was worth more than £700 million and included a buy-in of the remaining members of the Interserve Section, as well as the reshaping of the existing buy-in policy.
According to the business, it chose Aviva following a market process led by law firm Lane Clark and Peacock, and the scheme trustees were independently advised throughout the process by the firm and Sackers, who provided legal advice.
Tilbury Douglas Construction (TDC), previously part of the Interserve Group, was the sponsoring employer of the scheme and was advised by professional services firm PricewaterhouseCoopers and law firm Slaughter and May.
David Trapnell, chair of trustees, Interserve Pension Scheme, said: “We are pleased to have agreed a new solution with Aviva which provides security and certainty to more than 7,000 scheme members. In order to best protect members’ interests, it was crucial we acted to secure a long-term resolution and Aviva offered the best outcome. We would like to thank Aviva and our advisers who helped us get to this stage.”
Yadu Dashora, partner at Lane Clark and Peacock, added: “This was an innovative transaction in many respects, due to the circumstances of the scheme. We are delighted to have been able to use our experience of restructuring cases to secure members’ benefits with Aviva. It has been a pleasure working with a trustee board that clearly puts members interests first, rather than following the path of least resistance.”