July 10, 2014 / 9:17 AM / in 3 years

Merchant Navy pension scheme in 1.3 bln stg deal with insurers

LONDON, July 10 (Reuters) - The Merchant Navy Officers Pension Fund (MNOPF) said on Thursday it had agreed a deal to transfer 1.3 billion pounds ($2.21 billion) in liabilities to insurers Rothesay Life and Legal & General.

Around 40,000 members of the fund’s ‘Old Section’ will now get their pension paid directly by the insurers, and means all pension entitlements from this section of the fund, which closed in 1978, are now fully insured, the fund said in a statement.

“Overall our members will enjoy greater security than most pension fund members, thanks to the regulatory and capital requirements for insurers, which are more rigorous than those of most pension funds,” MNOPF Chairman Peter McEwen said.

In a so-called ‘buy-out’ deal, the scheme transfers all liability for running the scheme to the insurance company. ($1 = 0.5877 British Pounds) (Reporting by Simon Jessop)

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