// Co-op Group close to striking deals to offload around £2bn of its pension liabilities
// It is close to deals with Aviva & PIC to take on about a quarter of its £8bn PACE pension scheme
The Co-op Group is reportedly close to deals with Aviva and PIC to take on about a quarter of its £8 billion PACE pension scheme.
The group has said it is close to striking deals to offload around £2 billion of its pension liabilities to insurance companies, Sky News reported.
The Co-op Group, which includes supermarkets and funeralcare, is close to separate deals worth roughly £1 billion each with Aviva and Pension Insurance Corporation (PIC).
READ MORE:
- Co-op faces equal pay claim from over 400 workers
- Central England Co-operative appoints Andy Peake as commercial director
The transaction with Aviva could be made public as soon as Wednesday, according to Sky News, while the agreement with PIC was likely to take slightly longer to finalise.
The £2 billion of liabilities from the Co-op’s PACE pension scheme will mean the mutual receives regular payments from Aviva and PIC to fund the relevant liabilities.
About half of the £8 billion scheme – which is fully funded and at the last actuarial valuation – had an accounting surplus of £1.8 billion, and supports pensions being paid to retired members.
Moreover, Aviva is also in talks about a deal to insure Debenhams‘ executive pension scheme, which holds more than £200 million assets.
The deal, which could be confirmed within a matter of weeks, will guarantee future benefits to members of its pension scheme.
Click here to sign up to Retail Gazette’s free daily email newsletter
