Aon advises Alcatel-Lucent Pension Scheme on ?300 million pensioner buy-in with Aviva
Alcatel-Lucent, the global telecommunications equipment group, has UK pension scheme defined benefit liabilities of around ?1 billion. Aon Hewitt acts as actuary, consultant and investment adviser to the scheme. This transaction, which is a key part of a longer-term de-risking objective, involved a buy-in of ?300 million of pensioner liabilities. Aon Hewitt had previously secured a smaller group scheme in a full buyout in 2014.
Martin Couzens, Chairman of Alcatel-Lucent Pension Trustees Limited, said:
“We were very satisfied with this increase in security for our scheme and its members. We have obtained full insurance backing for most of our pensioners and even made a saving against our funding reserve. Overall this takes us substantially closer towards our goal of full buyout.
“Aon has smoothly managed all aspects of the transaction as well as keeping us informed and ready to act very quickly to seize the opportunity.”
Nick Johnson, Managing Director of Bulk Purchase Annuities at Aviva, said:
“I was pleased that we were able to help the trustees capture an attractive opportunity using our experience from deals we have previously been involved in. Working collaboratively with all parties was vital to this agreement and we have achieved a successful outcome for everyone involved.”
Dominic Grimley, principal consultant and risk settlement specialist at Aon Hewitt, said:
“This is a good outcome which has come about after a strongly contested auction. Aviva has shown great flexibility to accommodate the scheme’s needs and the trustees have acted extremely efficiently throughout to secure an ideal result for all parties in a short space of time.”
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