- 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
For many years now, we have been working hard to fully de-risk this scheme, and this last transaction completes the final step in our journey. We returned to Rothesay Life on more than one occasion because at every step they provided a low-risk solution with operational precision and accompanying longevity, pension increase and re-investment protection.BEN FOWLER, GROUP HEAD OF REWARD FOR VESTEY GROUP LTD
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.
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.