Vehicle breakdown cover provider RAC has completed a £1.3 billion full-scheme pension buy-in for its 2003 pension scheme.
The full scheme buy-in insures £1.3 billion of liabilities and secures benefits for around 19,000 of the scheme members.
The transaction, which was completed in August, includes the novation of the scheme’s existing longevity swap and a transfer of illiquid assets.
The scheme trustees were advised by Hymans Robertson and legal advice was provided by Linklaters.
Brian Bussell, chair of Aviva Staff Pension Trustee, said: “We are delighted to have completed this complex transaction covering all the benefits due to members of the RAC 2003 pension scheme, providing them with the additional security of a full scheme buy-in. The trustee is grateful for the hard work of its advisors and in-house team in getting this transaction over the line.”
Andy Morley, senior deal manager at Aviva, added: “At Aviva, we pride ourselves on reaching successful outcomes for schemes, so we’re really pleased to have secured benefits for RAC scheme members. This transaction was complex and required the expertise and commitment of all parties.”
Iain Pearce, partner at Hymans Robertson, said: “We’re delighted to have advised on this transaction to secure benefits for members. Transactions of this size inevitably have a number of complexities and we’re delighted to have applied our longevity swap conversion and more than £1 billion transaction expertise to work closely with all parties to smoothly reach this full scheme buy-in.”
RAC was contacted for comment prior to publication. Benefits it offers its employees include a 24-hour employee assistance programme, a car salary sacrifice scheme, a company car or car allowance depending on roles, group life assurance of up to four times a salary, a health cash plan, private medical insurance, cancer health screening, GymFlex membership and a bikes-for-work scheme.
