Members secured

13,500

Value

£500m

Type

Full buy-out

Impact

  • Initial buy-in transaction used gilts and cash already held by the scheme
  • Additional cover provided for changes in data and any missing beneficiaries
  • Series of transactions with Rothesay allowed the scheme to secure all their liabilities and wind-up

Highlights

Journey to buy-out

At the end of 2012 Rothesay was chosen to insure a portion of pensioner member benefits in order to remove investment risk, pension increase risk and longevity risk

When a second transaction was completed in March 2014 covering the remaining pensioners, the trustee did not expect to be able to afford a full buy-out

But solvency levels and annuity pricing for long-dated liabilities, moved in the right direction and Rothesay was able to secure the remaining liabilities for deferred pensioners in June 2014

Smooth wind-up

Having completed extensive checks on the legal documentation and benefit calculations, Rothesay also provided the scheme with some cover for additional liabilities relating to changes in data or benefit calculations and to any missing beneficiaries that might emerge
Individual policies have been issued to the scheme members enabling the scheme to wind-up