National Express has completed a buy-in with Rothesay Life, securing 100 per cent of the future obligations of its UK Group Scheme, it has revealed.

The deal, for an undisclosed amount, was completed in October 2018, with the scheme recording a £14.9m surplus at the end of 2018, according to its end of year results.

Despite this, the firm’s larger scheme, the West Midlands Bus plan (WMB), recorded a scheme deficit of £127.3m at 31 December 2018.

The group’s results stated: “In October 2018, the group scheme executed an insurance “buy-in” with Rothesay Life for 100 per cent of the future obligations of the funds of the UK Group scheme.

“Whilst this results in a reduction to the actuarial surplus, this materially derisked the group’s balance sheet, as any change in future liabilities will be met by the insurance company.”

National Express said the insurance policy was purchased using the existing assets of the plan, and that it has “no further obligation”, to make any further payments into the scheme.

The UK Group Scheme, closed to future accrual, recorded a £43.2m surplus in 2016.
WMB, which remains open to accrual for existing active members, will receive deficit contributions of £7.7m per annum until 2020.

Pensions Age has approached National Express for comment.

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