Buy-Out
Transfer the full risk and related liabilities of your pension scheme to us and remove them from the corporate balance sheet. Your members gain peace of mind from knowing that payments are backed by an FSA-regulated insurer.
How it works
A buy-out is a sequential process, which follows the steps outlined below:
- The trustees of the pension scheme bulk transfer their full pension scheme liabilities to Rothesay Life in exchange for a single premium.
- As a result of the transfer, ties are severed with the old scheme and all insured members’ benefits are paid directly to the beneficiaries by Rothesay Life through its administrators. Payments to members will not be impacted and will continue to be paid to them when due.
- Over time, we then issue individual annuity policies to members. Links with the original scheme and corporate sponsor stop as members become direct policyholders of Rothesay Life.
Why it is secure
The insurance policy is held as an asset within the scheme, producing an income matching the insured benefit payments.
As Rothesay Life is an insurer regulated by the Financial Services Authority (FSA), we must hold surplus assets (capital). These assets are monitored by the FSA to ensure we can meet insured payments – even in an economic downturn.
Options
There are various options to deliver enhancements to the security if desired by the trustees.
For examples of our buy-in solutions,
To discuss how we can help you, call us now on +44 (0) 20 7552 4944