Homestyle Pension Company has completed a £103 million bulk purchase annuity transaction with Aviva.
The arrangement will insure the defined benefit (DB) pension liabilities of all 1,294 members of the Homestyle 2007 pension scheme, removing their investment and longevity risks from the scheme. Members will not see any change in the amount of their benefits or how these are paid following the transaction.
The transaction was led by EY and advised by Isio. Squire Patton Boggs provided legal services to the scheme’s trustees, Bestrustees, and Addleshaw Goddard provided legal advice to Homestyle Pension Company.
Rachel Tranter, chair of trustee for the scheme and director at Bestrustees, said: “I am really pleased we’ve been able to complete this transaction, which materially improves the security for all members of the pension scheme. The transaction required all parties to work collaboratively and at speed to take advantage of attractive pricing in the market. It was a great team effort and I am delighted that we’ve been able to bring some welcome news to the scheme members.”
