- £680m bulk annuity covering over 34,000 members globally under an all-risks buy-out transaction.
- Joint project with the Trustee to wind-up the Old Section of the Fund and streamline policy administration before issuing individual policies to all members in July 2014 and completing the buy-out.
- Residual assets were used to give all policyholders a 2.2% uplift to their total pension.
The global distribution of Rothesay Life's policyholders from the MNOPF Old Section pension scheme
- The MNOPF is an industry-wide pension scheme established in 1937 to allow shipping companies to provide retirement and death benefits for their officers.
- The Old Section of the Fund was closed in 1978 with the New Section providing further accrual of benefits after 1978.
- The Trustee of the MNOPF had previously secured £600m of the Old Section’s pensioner liabilities through policies with Lucida (now L&G) in 2009 and 2010 --these policies covered 65% of each pensioner’s monthly payments.
- Further to this transaction, the Trustee purchased a £680m bulk annuity insurance policy with Rothesay Life after running an extensive competitive process.
This policy covered:
- The remaining 35% for the pensioners previously insured
- Liabilities for deferreds and any members who have not yet claimed their pension
- The cost of any corrections to benefits in the event of any errors.
Just prior to the completion of the wind-up of the Old Section of the Fund, surplus assets were used by the Trustee for the benefit of the members, purchasing an additional 2.2% uplift to all pensions from Rothesay Life.
- The Trustee was committed to winding up the pension scheme and the issue of individual policies.
- In conjunction with the Trustees of the MNOPF scheme, L&G and HMRC, Rothesay Life has built a unique administrative arrangement to provide a seamless member experience.
- All policyholders will receive a single pension payment and have one contact point for queries, even if they have pensions with Rothesay Life, L&G or the MNOPF New Section.
- This service was promoted during a series of 10 roadshows across the UK in 2014 where Rothesay Life met with policyholders to explain the changes – the feedback was overwhelmingly positive.
Peter McEwen, MNOPF Chairman