On the go: The Wm Morrison 1967 Pension Scheme has agreed a £762mn buy-in with Rothesay, securing the remainder of the liabilities for the 1967 section of the Morrisons Retirement Saver Plan.
The deal secures the benefits of 2,650 pensioners and dependants and a further 5,483 deferred members, following a previous transaction with an unnamed insurer.
The buy-in required no additional contribution from sponsor Morrisons. The agreement was achieved through an accelerated process supported by the scheme’s readiness as it came to market, a statement read. The transaction was also structured to accommodate the plan’s illiquid asset run-off.
Aon was the lead broker on the transaction, while legal advice was provided to the scheme by Clifford Chance and to Rothesay by DLA.
Aon partner John Baines noted that the trustees and sponsor were able to “capture the market opportunity that arose towards the final quarter of last year, when scheme funding significantly improved due to considerable movement in bond yields”.
He said: “They were ready to take it due to five years of buy-in preparation, a robust strategy and a nimble decision-making framework. As a result, the benefits for all members are now secured by insurance policies.”
Trustees chair Steve Southern said: “We are delighted to have now achieved pension security for all members of the plan. We worked hard with the company and our advisers to enter the market in a position to act quickly and I am very pleased that Rothesay was able to match our ambition, executing quickly and providing certainty over pricing and asset run-off.”
This article originally appeared on MandateWire.com.
