BBA Pension Trustees agrees to insure its pensions

BBA Pension Trustees, with the support of its sponsor BBA Aviation has agreed to insure its pensions in payment with Legal & General.

The transaction means that 270m of assets will be transferred to Legal & General, which will pay annuity payments to the scheme for its existing 5,900 pensioners.

This will involve approximately 60% of the pension scheme’s assets.

Andrew Wood, group finance director at BBA Aviation, said: “This investment decision marks an important step forward for the BBA pension scheme. Current and future pensioners will see no change in the amount of benefit they receive or the way in which it is paid. But by swapping assets in the scheme for an annuity provided by Legal & General, we can de-risk the scheme and so provide greater stability and certainty in funding for all members.”

The BBA pension scheme was advised on this purchase by Hewitt, Hymans Robertson and Hammonds.

BBA Aviation and BBA Pension Trustees have also appointed HR Trustees as professional trustee.

The professional trustee will work alongside the company appointed and member-nominated trustee directors for the 450m BBA income and protection plan.

Steven Ross, HR Trustees’ director, will act as chairman of trustees.