Members secured

5,700

Value

£450m

Type

Buy-out

Impact

  • Attractive pricing due to Rothesay’s access to ultra-long-dated assets
  • Cover for residual risks from transaction completion
  • Premium locked to a portfolio of gilts, giving price certainty to the trustee and company

  • This is an important step in improving the security of Post Office workers’ pension benefits. We carefully considered the available options before running a process to select Rothesay and implement a bulk annuity transaction. It is through the collaboration of all parties that we were able to lock into this opportunity quickly and achieve an excellent outcome for the Post Office Limited Section.

    JOANNA MATTHEWS, INDEPENDENT CHAIR OF THE ROYAL MAIL PENSION PLAN

Highlights

Rothesay’s favourable pricing

The transaction covered a section of the scheme that only included members of the scheme who were employed in 2012, so the duration of the liabilities was very long. In addition, a large part of the benefits secured increase each year in line with CPI
Despite these challenges, we were able to provide attractive pricing to the Trustee, thanks to our ability to source ultra-long-dated CPI linked assets

Additional cover for residual risks

The policy included cover for residual risks from the point of completion, to allow the Trustee to provide long-term benefit security to members

Price certainty

We linked the insurance premium to a portfolio of gilts, providing price certainty to the Trustee and Company

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