The Macmillan Cancer Support Pension Scheme has agreed a £33.7m buy-in with Aviva, covering all of the scheme’s retirees and deferred members, and their beneficiaries.

The defined benefit (DB) scheme, which was closed to new members in 2005 and to all new monetary contributions in 2010, moved into a funding surplus in recent years thanks to the scheme's investments.

This surplus enabled the scheme’s trustees and Macmillan to review options for the future of the scheme to ensure the best outcomes for members, with the buy-in with Aviva highlighted as the "culmination" of all that work.

Aon was appointed as risk transfer consultant by the trustees and Macmillan for the deal, which also made use of Aon’s Pathway service, while Van Lanschot Kempen also provided support, having worked as the scheme’s fiduciary manager since 2011.

The charity argued that, as well as members’ benefits being secured with Aviva, this transaction is good news for Macmillan’s beneficiaries, as it removes any future possibility of Macmillan having to contribute money into the scheme, ensuring that the charity can focus its funds on people living with cancer.

Indeed, Macmillan pension scheme adviser and scheme secretary, Emma Moscrop, highlighted the deal as "good news" for both the members and Macmillan Cancer Support.

“We’re grateful to all our advisers for the excellent support they’ve provided to the scheme and Macmillan on this transaction," she continued.

“The efficient preparation and progression to transaction on agreeable terms was due to their help and guidance. The project benefitted from the ongoing strong collaborative relationship the scheme has with Macmillan and their constructive engagement throughout the process.”

Adding to this, Macmillan chief financial and operations officer, Karen Watson, said "Macmillan Cancer Support has always prioritised looking after the scheme’s members, who are current and ex-colleagues of the charity.

“We’re very pleased that, in an uncertain world, members can now rely on the financial strength of Aviva to secure their pensions. It’s also a huge positive for Macmillan’s beneficiaries, as we’ve removed any future risk of Macmillan having to contribute money into the scheme.”

Aviva head of bulk purchase annuity origination, Jamie Cole, added: “We’re delighted that, after a rigorous tender exercise, the trustees of the Macmillan Cancer Support Pension Scheme and Macmillan chose Aviva to secure member benefits.

"We have real empathy with Macmillan Cancer Support and it’s gratifying to be able to support them and their pension scheme members through this buy-in.”

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