British Red Cross has completed a £30 million buy-out deal for its pension fund and the British Red Cross Society’s Scottish branch retirement benefits scheme.
The transaction with Aviva will insure the defined benefit liabilities for around 360 members across both schemes, and removes the investment and longevity risk. The members will not experience any benefit entitlement changes as a result of the transaction.
The schemes’ trustees were advised throughout the tender process by Barnett Waddingham, while Womble Bond Dickinson provided legal advice.
Clive MacTavish, chief finance officer at British Red Cross, said: “We’re delighted to be working with Aviva again to secure the benefits of both schemes for pension members and, thanks to this collaboration between Aviva and our pension trustees, our members can now feel even more secure about their pensions.
“Aviva has been a valued supporter of the British Red Cross since 2016. Through generous contributions of time, skills and funding, we’ve supported communities in the UK and around the world to be better prepared and able to respond to crises.”
Keith Jecks, chair of trustees for the British Red Cross pension funds, added: “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.”