Members secured

20,000

Value

£830m

Type

Full buy-out

Impact

  • Guarantee of PPF benefits provided comfort to the trustee
  • Price and execution certainty provided within one week of selection
  • Transaction facilitated the Scheme’s completion of data cleanse and wind-up
  • Final members’ benefits secured with Rothesay were higher than members would have received from the PPF

Background

In March 2011, the Uniq plc Pension Scheme completed a compromise agreement with the sponsoring employer as existing pension benefits were not sustainable.
The scheme became 90% owner of the company and gave up the right to any future contributions.
It was the trustee’s objective to secure benefits in excess of PPF benefits to avoid falling into the PPF.
Significant data cleansing work on the level of benefits was required which meant that the cost of the final benefits was uncertain.
With the backdrop of considerable economic volatility throughout 2011’s Euro sovereign crisis as well, the scheme was at risk of not being able to secure PPF benefits and falling into the PPF.

 

Highlights

Price and execution certainty within one week of Rothesay being selected

Rothesay provided a guarantee of PPF levels of compensation so that there was no risk of the scheme falling into the PPF while data cleansing activities were undertaken
Premium based on the scheme’s gilt portfolio to provide price certainty
On completion the trustee delivered the gilt portfolio to Rothesay, leaving itself with enough cash to complete the data cleanse and wind-up

Scheme members’ benefits were uplifted

On completion of the data cleanse, benefits were finalised with Rothesay at levels above what would have been provided by the PPF