As a result, Aviva will insure the defined benefit liabilities for around 650 NTL members, removing the investment and longevity risk of these people from the Scheme.
In addition, previously staff members of National Transcommunication Limited will see no chance in the amount of their benefits or the way in which they are paid as a result of the transaction.
The process was handled on behalf of the trustees by XPS Pension Group with Eversheds Sutherland providing legal advice.
Jamie Cole, head of bulk purchase annuity origination at Aviva, said: “We are delighted that the Trustees of the scheme chose Aviva to secure member benefits. All parties have collaborated to deliver a very smooth transaction. Our focus now is to work closely with the Trustees to ensure the transition is managed as quickly and efficiently as possible.”
Ross Russell, chair of trustees at NTL 1999 Pension Scheme, added: “The Trustees are really pleased to have insured substantially all of our members’ benefits with Aviva. This transaction achieves maximum security for members’ benefits whilst stabilising the funding position of the Scheme. We have been working towards this goal over a number of years and found it really beneficial to work closely and collaboratively with our advisers. We are delighted with the outcome of the project.”
Ash Williams, partner at XPS Pension Group, stated: “We are delighted to have completed this transaction on behalf of the Trustees, which represents a culmination of years of strategic planning and preparation to get the Scheme ‘transaction ready’. As a result of this preparatory work, we were able to move really quickly when the market opportunity presented itself and managed to get strong engagement across the market, securing great terms for the Scheme’s members with Aviva.”
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