Post Office

5,700

£450m

Buy-out

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.