General Motors completes £53 million bulk annuity deal

The defined benefits (DB) liabilities of members of the General Motors VACPF (Vauxhall Associated Companies Pension Fund) have been insured by Aviva, it has been announced.

The £53 million bulk annuity transaction means the DB liabilities of 1,392 members are now protected, removing the investment and longevity risk from the Fund.

The move will also ensure members see no change in the amount of benefits they are paid as a result of the transaction.

Rob Assinder, chair of the Trustee of General Motors (VACPF) Pension Fund, said: “Insuring our members’ benefits with Aviva provides them with long-term security.”

He added: “It was made possible through a collaborative period of intensive preparation led by Aon, with legal advice from CMS and Eversheds Sutherland.”

Jamie Cole, head of bulk purchase annuity origination at Aviva, said: “We’ve worked closely with the Trustees of the General Motors Pension Fund to complete this transaction. Aviva’s robust capital position and experience were important considerations for the Trustees when selecting an insurer to secure member benefits.”

Aon led the process to select an insurer through its Pathway service, while the Trustee of the scheme received legal services from Eversheds Sutherland (International) LLP and CMS Cameron McKenna Nabarro Olswang LLP.

Michael Walker, principal consultant, Aon Solutions UK, commented: “This transaction with the General Motors Pension Fund was able to complete rapidly, capturing favourable pricing, due to the enhanced level of preparation completed between Aon and the in-house pensions team and by using Aon’s Pathway service which is specifically designed for schemes of this size.”

This bulk annuity transaction comes after Aviva also completed a £103 million bulk purchase annuity transaction for the Homestyle 2007 Scheme in December 2020. This saw Aviva insure the DB pension liabilities of all 1,294 scheme members.