The KLM UK Pension Scheme has completed a £240m buy-in transaction with Rothesay.
The deal covers all 1,852 members of the scheme whose policies were yet to be insured, including 924 pensioners and their dependents, and 928 deferred members.
The scheme is sponsored by one of the world’s oldest operating airlines, KLM Royal Dutch Airlines.
The deal was co-led by EY, who acted for the company, and Capita Pension Solutions who represented and advised the trustees.
Rothesay and the trustees received legal advice from Debevoise & Plimpton and Sackers respectively.
Rothesay business development, Roisin O’Shea, commented: “Rothesay is dedicated to protecting the pensions of nearly a million people and we are delighted to secure the future for members of the scheme.
“Rothesay’s proven execution capabilities enabled a very quick process, with the transaction completed within two months of the scheme approaching the market and signing just two weeks following exclusivity.”
Trustee Transaction Committee chair, Albert Smidt, said the trustees were “very pleased to have reached this important milestone in our journey towards de-risking the scheme and securing members’ benefits”.
He added: “The sponsor KLM has always been supportive of the scheme, even in times when it was in a less favourable condition.
“We prepared this buy-in on a short timescale, in close cooperation with the company and the support of our scheme advisers Capita Pension Solutions and Sackers and EY as company adviser.
“As chair of the project team, I am particularly proud of the outcome and the smooth process we have been able to organise together.”
