Members secured

10,700

Value

£3.6bn

Type

Pensioner buy-in

Impact

  • Quick completion of transaction
  • Bespoke price lock portfolio linked to the scheme’s assets
  • Initial contract allowed further tranches of beneficiaries to be secured on the same terms - second tranche added in December 2020
  • Buy-in reduced scheme’s exposure to longevity and financial risks

  • The Trustees are pleased to have secured a buy-in transaction with Rothesay. The buy-in provides greater certainty and assurance about the future costs of providing members’ pensions, and we see this as a positive and prudent way of managing the overall funding and risk of the scheme.

    NIGEL STAPLETON, TRUSTEE CHAIR

Highlights

  • Transaction completed in just three months
    The buy-in contract was signed just three months after initially coming to market, which allowed the scheme to lock in to favourable pricing and market conditions.
  • Ability to cover further tranches of members under the same contract
    This structure allows for future transactions to happen very quickly, with minimal additional legal work required.
  • Rothesay’s price-lock
    From the outset, we locked our premium to a subset of the scheme’s assets so that the trustees could be sure the transaction economics would not change over a volatile period in global markets.