The Marathon Service Limited Pension and Life Assurance Scheme has completed a £610m full buy-in with Rothesay Life, enabling them to cover over 1,400 members.
The transaction, which was initiated by the scheme’s sponsoring employer, RockRose Energy, has secured benefits for the 740 pensioners and 700 deferred members in the scheme.
RockRose Energy, which is an independent oil and gas production company, identified the opportunity on the back of a beneficial market movement which resulted from the COVID-19 pandemic.
The company went on to work closely with the Trustees via a Joint Working Group, which enabled them to lock in the pricing quickly.
The transaction was led by LCP, acting for RockRose, with Sackers providing legal advice. The Trustees were advised by Mercer and Herbert Smith Freehills. Legal advice was provided to Rothesay Life by Gowlings WLG.
Andrew Austin, Chair of RockRose commented: “This transaction gives certainty for the members’ pensions with an experienced and financially strong provider. The secondary benefit is that it has capped the financial risk to the sponsor. We are grateful for the advice received from LCP that allowed us to be opportunistic and secure outcomes that mutually benefited both the pension scheme members and the sponsoring employer.”
Chris Martin, Chair of Trustees and Executive Chairman of ITS, added: “This transaction secures benefits in full for our members, ensuring a greatly enhanced level of security. We are delighted to have been able to secure this transaction in the current economic climate, which was only achieved by all parties working closely together.”
Ken Hardman, Partner at LCP said: “We’re delighted to have been able to help secure the benefits in full for all the members of the Scheme. This transaction is a concrete example of identifying a market opportunity and being able to act quickly on it before market conditions revert.”
