Members secured

12,300

Value

£3.8bn

Type

Full buy-out

Impact

  • Absolute upfront certainty with no further premiums due
  • Cover for residual risks from transaction completion
  • One-off final pension contribution of approximately £0.8bn
  • Development of a unique solution for dealing with illiquid assets

Highlights

Rothesay's price-lock

From the outset, we locked our premium to the scheme's portfolio of assets so that the trustees could be sure the cash contribution would not change

Close collaboration

The trustees and Asda worked closely together throughout selecting an insurer and transacting. This unique joined-up approach showed us that both parties were fully committed to the transaction and were ready to make decisions quickly

A solution for illiquid assets

Part of the scheme's assets were illiquid investments, which insurers don't typically accept as premium payment. However we worked closely with the trustees and company’s advisors to come up with a solution which meant they didn't have to sell their illiquid assets at a discount

Additional cover for residual risk

Before coming to market, the trustees completed their own benefit audit, which complemented our own due diligence to form a deal with additional cover for residual risks

In-house administration

We worked closely with the in-house pensions team at Asda throughout the process and implementation to ensure a smooth transition to insurance and full wind-up of the scheme