Panasonic Systems Networks Co. U.K. Ltd. Pension and Life Assurance Scheme, Newport, Wales, completed a buyout with Rothesay Life.
Terms of the buyout, and the pension fund's liabilities and assets, are not being disclosed, said a spokesman for Rothesay. Executives at the pension fund could not be reached for comment by press time.
The pension fund was set up in 1988 and grew to about 600 participants, according to a news release from Rothesay. A series of risk-reduction initiatives led to a point at which the company was “more easily able to purchase the benefits outright,” the release said. Further details were not available by press time.
Aled Edwards, principal consultant and actuary at Quantum Advisory — which has worked with the pension fund for 10 years as adviser and administrator — said in a telephone interview that the buyout was preceded by an enhanced transfer value exercise.
An enhanced transfer value exercise is typically used by an employer to reduce pension costs and liabilities. An employer will offer employees a higher value than their benefit accruals in order to transfer them out of a pension fund.
“Following a competitive selection process, we chose to transact with Rothesay Life because of their ability to structure a bespoke policy, which met the needs of our sponsoring employer whilst providing the best possible outcome for all our members,” said Sandra Connolly, trustee chairwoman of the Panasonic U.K. pension fund, in the release.
Tom Pearce, managing director at Rothesay Life, added that the pipeline “is predominantly full of buyouts at the moment, and as the market conditions remain favorable we expect sponsor interest to continue.”
