Buy-out completed within 12 weeks

Following a competitive selection process, we chose to transact with Rothesay Life because of their ability to structure bespoke policy which met the needs of our sponsoring employer whilst providing for the best possible outcome for all our members. The Trustees are pleased to be able to offer our members 100% secure benefits with new policies in such a timely manner.

Sandra Connolly, Trustee Chair of Panasonic System Networks Pension Scheme

Key Facts

  • £45m buy-out transaction for the Panasonic System Networks Pension Scheme covering 600 members with wind-up completed within 12 weeks

The Transaction

As part of the orderly wind-up of the Panasonic System Networks Pension Scheme, the trustees and the corporate sponsor reached an agreement to wind up and secure the benefits of the associated pension scheme with an annuity provider.

Outside of the usual requirements of competitive pricing, track record in the market and financial strength, the trustees and corporate had a number of additional requirements:

  • Firstly, the company were aware that a further contribution to the pension scheme would be required, but did not want to create surplus in the scheme as this would be returned net of tax (even though no tax relief had been received on making the contribution)
  • Secondly it was imperative to the company that the liabilities were off balance sheet by the end of September 2014

Rothesay Life provided an insurance policy which included commitment to issue individual policies or utilise a Deed Poll to ensure the scheme was off balance sheet by the end of September 2014

The Conclusion

  • Having entered into the contract in June 2014, the scheme was off balance sheet and individual policies issued within 12 weeks. A member forum was hosted specifically to allow members of the scheme to ask questions about the changes


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