Defence manufacturer’s trustees agree buy-in
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The STS Field Grant Ltd Pension Scheme has completed a £5m full buy-in covering 14 deferred and 34 pensioner members.
The transaction with Aviva completed in June this year, using the scheme assets. The defined benefit scheme is sponsored by Key Technologies, a manufacturer of specialist ammunition and pyrotechnics.
Using Broadstone’s SM&RT Insure process, the trustees picked Aviva’s streamlined service, Clarity. Last summer, Broadstone worked on a pilot with Aviva, identifying well prepared small schemes to test Aviva Clarity at very small scheme sizes.
Alongside annuity broking, Broadstone provided actuarial, investment consultancy and scheme administration. TLT gave legal advice to the trustees, while Aviva had in-house legal support.
“The preparatory work undertaken enabled us to accelerate the process,” the scheme trustees said. “We truly appreciate the company’s support throughout the transaction and the project exemplifies a clear team effort with a mutually beneficial outcome.”
Paul Donnelly, bulk purchase annuity senior deal manager at Aviva, said: “This transaction demonstrates that schemes of all sizes can successfully access the bulk annuity market and achieve a positive outcome for their members.”
Bob Jenkinson, deal lead at Broadstone, added: “Despite the perception of a limited market for small schemes like the STS scheme, the SM&RT process has again delivered choice and flexibility.”
