Rothesay secures £6m aviation pensions scheme buy-out

Rothesay and K3 Advisory, the bulk annuity and consolidator, have completed a £6 million pensions buy-out with an unnamed aviation scheme in a deal which insures the benefits of eight pensioners and 31 deferred members.

The scheme had already insured the benefits for more than 20 members in 2009 through a buy-in with Rothesay.

This transaction – led by Cartwright Benefit Solutions, who partnered with K3 – now covers around £6 million of previously uninsured liabilities, with total liabilities now covered of more than £10 million.

Speaking anonymously about the deal, the scheme’s chair of trustees said: “We were very keen to secure the benefits of the remaining members and were expecting the sponsor to be required to make a contribution to fund the buy-out.”

The spokesperson added: “Working collaboratively, Rothesay and K3 we were able to structure a transaction which locked in market conditions within the schemes assets, providing much welcomed certainty.”

Cartwright worked with the trustees to make sure the the scheme’s data and benefits were ‘transaction ready’.

Keir O’Donnell, actuary at Cartwright, said: “it is gratifying that such the transaction came together so quickly, especially as it allowed the Scheme to smoothly deal with the original buy-in at the same time.”

With the deal now in place, it means the whole scheme is insured with the same provider and is on its way to a full buy-out and eventual wind-up.

Cleo Taylor Smith, business development director at Rothesay, commented: “Despite the relatively small size of the deal, after discussion with K3 and the Trustees we were happy to provide a price lock on the premium, spanning the Christmas and New Year period. This gave the Trustees and sponsor absolute certainty and removed all market risk before the transaction completed.”