Law Debenture improves security for British Bankers’ Association scheme members through the purchase of a £95m insurance policy with Aviva

Law Debenture, the pre-eminent pensions governance organisation in the UK, and the British Bankers’ Association (BBA) are pleased to announce an agreement for a £95million buy-in transaction with Aviva.

Aviva will insure the defined benefit pension liabilities of approximately 213 members. The full scheme buy-in covers the investment, longevity, interest rate and inflation risks in respect of the scheme and therefore substantially reduces the pension risk. It is still subject to a pricing adjustment following data and benefit rectification.

The process to select an insurer and negotiate terms was led by LCP on behalf of LawDeb Pension Trustees as Sole Corporate Trustee.

Sean Burnard, Trustee Director of LawDeb Pension Trustees and Sole Corporate Trustee of the British Bankers' Association Pension Scheme, commented: “We firmly believe this full buy-in represents excellent value in context of a more secure future for BBA’s pension scheme members. When you consider the challenging times we find ourselves in, unprecedented in fact, we are very pleased to have been able to successfully transact accordingly. This is testament to extensive stakeholder management and a real lesson in positive collaboration between LawDeb as Sole Corporate Trustee, BBA, Aviva, LCP and Barnett Waddingham.  

Even through these volatile conditions, the price lock that we had in place with Aviva did what it was intended to do. Our ability to transact successfully also speaks to the robustness of the LawDeb Sole Corporate Trustee model, supported as it is by the breadth of experience and expertise of our leading Pensions Executive business, Pegasus.”

Andrew Harrison, Director of LawDeb Pension Trustees, added: “I am delighted that we’ve again delivered for one of our Sole Corporate Trustee clients. In addition to the extensive stakeholder management required, this transaction highlights a collaborative approach towards meeting all parties’ needs.”

Henrietta Royle, Chief Executive of BBA, commented: “It has been fantastic working with LawDeb and we are thrilled to have developed such a valuable and enduring partnership. Our Scheme has undoubtedly reaped the benefits from Sean’s considerable expertise and his commitment to all our scheme members. We are pleased to have been able to deliver such a positive result for our members with a very strong and reputable insurance company.”

www.lawdebenture.com/our-people-and-locations/member/sean-burnard

www.lawdebenture.com/our-people-and-locations/member/andrew-harrison