The British Red Cross Pension Fund and the Scottish Branch British Red Cross Society Retirement Benefits Scheme have agreed a £30m bulk annuity deal with Aviva, securing retirement benefits for around 360 members across both schemes.

The trustees of the schemes were advised throughout the tender process by Barnett Waddingham LLP, with Womble Bond Dickinson LLP providing legal advice.

The buyout aims to remove the investment and longevity risk for the employer, although members will see no change in their benefit entitlement as a result of the transaction

It also builds upon Aviva's existing partnership with the British Red Cross to work together on building safer and stronger communities in times of uncertainty and crisis, having also launched the Building Resilience Together program earlier this year.

Commenting on the deal, British Red Cross pension funds chair of the trustee, Keith Jecks, said: “It gives me great satisfaction that we have now achieved the trustees’ long-term goal of securing the benefits of our members through Aviva.

“We are grateful for the support provided to us by Barnett Waddingham over many years, including as lead adviser for the transaction, and for the constructive engagement of the British Red Cross throughout the process.”

Adding to this, Aviva head of bulk purchase annuity origination, Jamie Cole, stated: “We are delighted that the trustees of the schemes chose Aviva to secure member benefits. Aviva and the British Red Cross have a long heritage, and we have supported the important work they do in building more resilient communities since 2016.

“We look forward to our relationship continuing as we welcome the scheme members following the buyout.”

The broader partnership between Aviva and British Red Cross was also emphasised by British Cross chief finance officer, Clive MacTavish, who stated: “Aviva has been a valued supporter of the British Red Cross since 2016. Through their generous contributions of time, skills and funding, we’ve supported communities in the UK and around the world to be better prepared and able to respond to crises. As well as helping us be there for people when disaster strikes.”

"We're delighted to be working with them again to secure the benefits of both schemes for pension members and, thanks to this collaboration between Aviva and our pension trustees, our members can now feel even more secure about their pensions.”

Barnett Waddingham partner and head of charities/not-for-profit, Steve Hitchiner, stated: “Supporting charities like the British Red Cross Society is highly rewarding, and this bulk annuity transaction marks a significant achievement for the members.

“We are pleased to have guided the trustees throughout this journey, successfully completing the process in a busy bulk annuity market. Our sincere thanks go to the trustees, the society and Aviva for their collaborative efforts, which have been crucial in achieving this positive outcome.”

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