Nationwide Pension Fund completes £172m buyout with Canada Life
Nationwide Pension Fund, the closed defined benefit scheme of Nationwide Building Society, has completed a £172 million buyout with Canada Life.
The buyout concerns pensioners in the Cheshire and Derbyshire section of the fund and insures the fund against charges relating to the cost of providing benefits to those members.
The scheme was aided in its takeover preparation by Aon, which selected Canada Life following a competitive bidding process, and Sackers, which provided legal advice.
Membership has been described as the ‘next natural step’ in the Nationwide Pension Fund‘s risk reduction journey, as it aims to further enhance the security of all members of the Cheshire and Derbyshire chapter.
Catherine Redmond, Member of BESTrustees Trustee Management and Chairman of the Board of Nationwide Pension Fund, welcomed the joining, saying, “This transaction is great news for Nationwide Pension Fund and its members as it reduces the risks and helps to further secure our members’ pensions.
“As a board of directors, we are delighted to have reached this important milestone in our long-term risk reduction journey.
“The Trustee is grateful to Aon and Sackers for their support and looks forward to working closely with Canada Life.
Canada Life Director of Retirement Income Nick Flynn added, “This transaction has been brilliant to work with as Nationwide’s pension fund takes further steps to protect its members’ benefits.
Aon Risk Settlement Group associate partner Tom Scott said: “A takeover was the natural next step in the fund’s risk reduction journey, further enhancing the security of all members of the Cheshire and Derbyshire section.
“The transaction is a great example of what can be achieved through preparation, balanced negotiation with flexibility on the process and timing of the transaction, and collaboration between the parties.”