5th March 2018 ARC advises trustees of Royal Mail Pension Plan on £450m bulk annuity transaction with Rothesay Life
The Post Office has agreed a bulk annuity buy-in for its section of the Royal Mail Pension Plan, which insures all of its members with Rothesay Life. The deal covers deferred members and includes all benefits accrued since the Plan started in 2012.
ARC advised the trustees alongside Lane Clark and Peacock (LCP) and Sackers.
ARC’s role was to carry out an independent assessment and draw up a vendor due diligence report designed to present the risks to insurers in a way that was fair and quickly accessible. The report specified the legal entitlements to be matched by the insurance transaction. This specification had to present an exceptionally complex benefit structure, in a clean and precise manner.
Senior Partner Anna Rogers acted on the case alongside Partner Jane Kola.
Anna commented: “We were proud to work with the Trustees alongside their ongoing advisers on this transaction. The goal was to reduce the friction between the real world of pensions admin and the ivory tower of legal documentation. There are constructive things that can be done and a fresh pair of eyes can bring a new perspective. When you’re selling anything it helps if you present it well to the market and pension liabilities are no different.”
The views in this article are intended for general information purposes only and should not be used as a substitute for professional advice. ARC Pensions Law and the author(s) are not responsible for any direct or indirect result arising from any reliance placed on content, including any loss, and exclude liability to the full extent. Always seek appropriate legal advice from a suitably qualified lawyer before taking, or avoiding taking, any action. If you have any questions on the points raised in the above, please do not hesitate to get in touch.