Securing your benefits for the future
We let you know in your recent newsletter that we’ve recently made some investment changes to the RSP Section which will make members’ benefits even more secure in the future.
As of 4th March 2025, all members’ benefits have been secured through an insurance policy with Aviva, known as a ‘buy-in.
The Trustee has chosen Aviva as the provider of the insurance policy, as they are an experienced and specialist insurance provider who offer protection against risks such as investment performance, changes of interest rates, and inflation.
What is a buy-in?
A buy-in is a type of insurance policy that helps secure members’ benefits for the future. The Trustee remains responsible for the RSP Section and paying members’ benefits, but the insurer carries any risk. A buy-in helps to make pension schemes more secure for the future, and we have been able to purchase this policy with Aviva because of the strong financial position of the RSP Section.
What this means for you
It’s good news – we have increased the security of your benefits in the RSP Section, and there is no change to what you will receive, or who to contact if you have any questions.
You do not need to do anything as a result of the buy-in. The Trustee will continue to look after the RSP Section and will keep you informed of the plans for the future.
Why we’ve chosen to do this now
The RSP Section was in a strong financial position which meant it was in a good place to buy an insurance policy to cover all members’ benefits. In the long term, insurance companies like Aviva are generally considered to be a secure option for members’ benefits, as they can spread the risk much more widely than individual pension schemes can.
What could happen next
When a pension scheme has been fortunate enough to be able to secure a buy-in, it can then consider its next steps and look at options to add additional levels of security. One of the options that the Trustee can look at is a buy-out to then wind-up the scheme.
This is when a pension scheme fully transfers its assets to an insure. The insurer then issues individual policies to each member and is fully responsible for paying members’ benefits.
We will keep you updated with any developments.
