Manufacturing firm Molins UK has completed a £249 million bulk purchase annuity (BPA) buy-in transaction for its pension fund.
The transaction, which completed in June, secures the benefits of more than 3,500 members of the scheme. Mpac Group is the sponsoring employer of the fund.
The trustees of the Molins UK Pension Fund were advised by Willis Towers Watson (WTW), which led the transaction process. Legal advice was provided by Mayer Brown.
Sanjay Gupta, chair of trustees at BESTrustees, said: “We are pleased to have achieved this step that will provide greater security for members’ benefits. The collaborative and constructive approach between the trustee, scheme sponsor Mpac Group, and our advisers has helped to secure this positive outcome.”
Paul Donnelly, BPA deal manager at Aviva, added: “We’re pleased to have supported the trustees of the Molins UK Pension Fund in their ambition to secure scheme members’ benefits. The collaboration between all parties involved was key to achieving a positive outcome and we look forward to formally welcoming members of the scheme to Aviva in the future.”
Tom Ashworth, risk transfer director at WTW and lead adviser on the transaction, said: “We are delighted to have been able to help the trustee secure members’ benefits through a BPA policy, which has been a long-term goal of both the trustees and the sponsoring employer. The transaction benefitted from the agility and collaboration of processes with the joint working group, its advisers and Aviva, to navigate the transaction alongside the sale of illiquid asset holdings.”
Tom MacAulay, partner in global insurance group at Mayer Brown International, added: “This transaction has been a significant step towards securing the security of members’ benefits. Key to achieving this outcome was the collaborative and constructive approach between stakeholders and advisers.”
