Charity Macmillan Cancer Support has completed a £33.7 million bulk annuity deal for its pension scheme.
The full scheme buy-in with Aviva will secure the scheme’s retirees and deferred members’ benefits. The defined benefit (DB) scheme is maintained by Macmillan, under the stewardship of a board of trustees. It closed to new members in 2005 and to all new monetary contributions in 2010.
Due to a scheme funding surplus and careful management of the scheme’s investments, the trustees and Macmillan were able to review future options to ensure the best outcomes for members.
Aon was appointed as risk transfer consultant by the trustees and Macmillan, and provided advice around insurers’ environmental, social, and governance credentials and administration capabilities.
Karen Watson, chief financial and operations officer at Macmillan, said: “Macmillan Cancer Support has always prioritised looking after the scheme’s members, who are current and ex-colleagues of the charity. We’re very pleased that members can now rely on the financial strength of Aviva to secure their pensions. It’s also a huge positive for Macmillan’s beneficiaries, as we’ve removed any future risk of Macmillan having to contribute money into the scheme.”
Emma Moscrop, scheme secretary and Macmillan pension scheme adviser, added: “Achieving the long-term goal of securing the benefits of the scheme’s members is good news for both the members and Macmillan Cancer Support. We’re grateful to all our advisers for the excellent support they’ve provided to the scheme and Macmillan on this transaction. The efficient preparation and progression to transaction on agreeable terms was due to their help and guidance. The project benefitted from the ongoing strong collaborative relationship the scheme has with Macmillan and their constructive engagement throughout the process.”
Payam Kazemian, chair of the scheme trustees at Zedra Governance, said: “This deal represents the culmination of many years of collaborative end-game planning with Macmillan to ensure the pension promises made to members are met in full, whilst minimising the impact on the charity.”
