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