The Makro Staff Pension Scheme, Manchester, England, completed a £185 million ($291.5 million) pension buy-in with Rothesay Life, said Emma Watkins, partner at Lane Clark & Peacock and lead adviser on the deal.
The deal covers a “significant majority” of plan liabilities for retirees and former employees that are vested in the plan but have not yet retired, she said.
The pension plan was frozen in December 2011. The policy will be held by the trustee of the fund as an asset, with income paid to the pension fund.
Ms. Watkins declined to comment on the size of the fund, but said assets were not sufficient to meet the premium necessary for the transaction and the company made a contribution. She declined to comment on how much.
According to the latest National Association of Pension Funds 2013-'14 yearbook, the fund had £108 million of assets.
LCP also worked with the trustee's incumbent advisers. Pinsent Masons provided legal advice, and Towers Watson was actuary to the trustee.
“Successful completion of this transaction just over three months after approaching the market demonstrates the preparation and determination on the part of the trustee and the company to get to this position,” said Ms. Watkins in a news release by Rothesay Life. “It also shows how well-prepared trustees and sponsors who respond quickly when opportunities arise can take advantage of favorable market conditions and competitive pricing.”