In March 2020 the Trustee purchased an insurance policy with Just Retirement Limited known as a bulk annuity.
A bulk annuity is an insurance policy whereby the Trustee pays a single premium to an insurance provider, and in return that insurer will pay the Trustee monthly amounts to cover the pension payments for a large proportion of the Scheme's current pensioners and dependants. The bulk annuity is an investment of the Scheme and does not change the way members receive their benefits. Pensioners will not notice any change day to day.
Although the bulk annuity covers risk in respect of some of the Scheme's pensioners, this does not mean some members’ benefits are more secure than others. The bulk annuity is an asset of the whole Scheme and all members benefit from the improved security provided.