Arcadia Group avoids Pension Protection Fund with buy-in

London-based Arcadia Group Pension Scheme and Arcadia Group Senior Executive Pension Scheme insured £850 million ($1 billion) in liabilities through a buy-in with Aviva, a spokeswoman confirmed.

The latest deal covers the benefits of 8,800 plan participants. The trustees were able to secure benefits above the Pension Protection Fund levels.

Arcadia went into administration in 2020, sending its pension funds for the Pension Protection Fund's assessment. The PPF is a lifeboat fund for defined benefit plans of insolvent employers in the U.K.

Consultant Barnett Waddingham and law firm Gowling WLG provided advice.

"This is a positive development for members, securing their benefits for the long-term. Members will receive benefits based on their Arcadia Scheme pension, rather than receiving compensation from the PPF," Alda Andreotti, trustee chairman, said in a news release Friday.

"Our hard work will continue to maximise the benefits for all members and prepare the schemes for buy-out," he added.