LONDON Dec 12 The Merchant Navy Officers
Pension Fund (MNOPF) has insured almost half its workplace
pension liabilites in a 680 million pounds ($1.1 billion) deal
with specialist Rothesay Life, part of Goldman Sachs, the
biggest such transaction in Britain this year.
The MNOPF's retirement scheme is paying Rothesay Life for a
so-called bulk annuity policy that will generate income for the
fund's 'old section', which closed in 1978.
The deal means that the pension obligations for the 40,000
members are fully insured, after the MNOPF secured the other
half of its staff pension liabilities in a 500 million pound
transaction in 2009 and 100 million pound deal in 2010.
Unexpected increases in pensioners' lifespans are
threatening workplace pension schemes with extra costs just as
unstable financial conditions make it harder for them to meet
the costs of retirement income for their members.
This has put pressure on pension schemes to pass on some of
their pension liabilities to financially stronger banks and
Activity in pension transfer deals has picked up in the
latter part of 2012 as insurers take advantage of pension funds
looking to offload their liabilities.
Swiss Re completed an 800 million pound deal with
the pension fund of British insurer LV to help it absorb the
costs of members living longer than expected,
while earlier in December, Tate & Lyle signed a 347
million pound annuity deal with life insurer Legal & General