Grocery retailer Morrisons has completed a £270 million bulk purchase annuity buy-in for its Morrisons Retirement Saver Plan – RSP Section.
The transaction secures the benefits of more than 32,000 deferred members of the cash balance plan. In addition, Aviva underwrote a winding-up lump sum exercise for around 30,000 members.
This is the third buy-in that Morrisons has undertaken with Aviva.
Aon led the transaction on behalf of the trustees, while Clifford Chance provided legal advice to the trustee. DLA Piper provided legal advice to Aviva.
Steve Southern, a professional trustee from Vidett and chair of trustees for the plan, said: “Securing members’ benefits in full, while offering eligible members the option of a winding-up lump sum, means we can provide both security and flexibility, which is an excellent outcome. We are delighted to have achieved this, which is a testament to the hard work over the past few years to meet our de-risking goals.”
Sean Rooney, bulk purchase annuity deal manager at Aviva, added: “We’re pleased to have supported the trustees of the Morrisons Retirement Saver Plan with plans to secure member benefits. This transaction highlights Aviva’s extensive capabilities and our commitment to providing solutions tailored to client needs. It also demonstrates its ability to manage complex transactions and achieve good outcomes for clients.”
John Baines, senior partner at Aon, said: “The transaction required meticulous planning and creativity to design solutions for a highly unusual pension scheme. The structure developed here gives the trustee cost certainty and around 30,000 members additional benefit flexibility. This demonstrates that, even in a busy and competitive market, great results can be achieved where all parties commit to collaborating on complex transactions.”
