Aviva, an insurance, wealth and retirement specialist, has agreed an annuity buy-in with trustees of the Thomas Cook Pension Plan. The deal means Aviva will insure the defined benefit pension liabilities for more than 12,500 members.

Aviva said this would provide pension benefits “at or in excess of Pension Protection Fund (PPF) compensation levels”. The PPF is a statutory body that steps in to oversee pensions when a company collapses. In some cases, it will compensate pension holders. 

Avia added: “The buy-in and eventual buy-out will result in a better outcome for the vast majority of members than they may have expected after the liquidation of Thomas Cook.  No member will see any reduction in benefits.”

PPF relationship manager Dan Collins said: “We recognise that the last few years have been difficult for Thomas Cook scheme members so we are really pleased that the Plan has now secured this buy-in, ensuring improved pension benefits for the majority of members. 

“Our role is to support the members of the schemes we protect and we want to assure Thomas Cook scheme members of our continued support as this transition period develops.”

Jamie Cole, Aviva’s head of bulk purchase origination, added: “This transaction is an important step as it provides security for all members and an uplift in benefits for many. 

“The Trustees’ ambition is to complete the move to buy-out as soon as possible and we look forward to welcoming the Plan members to Aviva once this is complete.”