Toshiba Pension and Assurance Scheme, Epsom, England, insured £170 million ($234 million) in liabilities via a full buyout with Rothesay Life, said Antony Miller, director and CEO of 20-20 Trustees, the trustee of the plan.
The transaction covers the 1,350 deferred participants in the plan who have not yet retired from Toshiba U.K. The pension plan was previously frozen. The buyout will essentially wind up the pension plan.
"Some 16 months ago the plan decided that the deficit, which was over £80 million, needed sorting out," Mr. Miller said in a telephone interview. Toshiba contributed £100 million to the plan before entering into the buyout with Rothesay Life.
"Toshiba made the decision very quickly. The decision on the (buyout) was taken in February and it was completed by the end of March. The market (pricing) is good at the moment," Mr. Miller added.
PricewaterhouseCoopers advised the plan on the risk transfer deal.