Proposed transfer from Scottish Widows

An insurance policy taken out by the trustees of a defined benefit pension scheme (DB) to an insurance company to cover all or some of the scheme's pension liabilities. It is referred to as 'bulk' as it usually covers more than one beneficiary.

A pension buy-in is when the trustees of a defined benefit pension scheme enters into a bulk purchase annuity with an insurer, whereby the insurer assumes a portion of the scheme's liabilities.

The process when an insurer steps into the shoes of the trustee, and issues individual annuity policies directly to pension scheme members. Member’s benefits are then provided directly by the insurer and the trustee is discharged from the liability in respect of those benefits it has bought out. If all benefits are bought-out, the pension scheme usually winds up.

The Chief Actuary of an insurance company, being a senior actuary appointed to advise the insurer’s Board of Directors about the risks which may affect their business.

The Financial Conduct Authority, the regulator responsible for the regulation of financial markets and for the conduct supervision of financial services firms in the UK.

The High Court of Justice of England and Wales.

The independent expert appointed for this proposed transfer is John Hoskin FIA of Barnett Waddingham. The appointment of the independent expert was approved by the PRA following consultation with the FCA. An independent expert’s main role is to report to the High Court on the effects of the transfer on policyholders.

Individual annuity policies issued to certain pension scheme members by an insurer, for example pursuant to a bulk purchase annuity previously issued by that insurer.

A legal process in the UK under the Financial Services and Markets Act 2000 which allows the transfer of insurance business from one insurer to another, subject to Court approval.

Members of pension schemes in relation to which the trustees have entered into a bulk purchase annuity with Scottish Widows or Rothesay (as applicable), and who have not entered into an individual annuity policy with that insurer.

The Prudential Regulation Authority, the regulator responsible for supervising the way that insurers and other financial institutions manage their business in the UK.

The PRA and the FCA.

Rothesay Life Plc

The second hearing at the High Court during which the Scheme may be sanctioned by the High Court.

The legal document setting out the terms for the transfer of the Transferring Business from Scottish Widows to Rothesay under Part VII of the Financial Services and Markets Act 2000.

The date the Scheme takes effect following approval by the High Court, which is expected to be 11 June 2025.

Scottish Widows Limited

Any person with a right under a contract of insurance with Scottish Widows, including the Transferring Policyholders and policyholders who not transferring under the Scheme.

The bulk purchase annuities part of the long-term insurance business of Scottish Widows, comprising the bulk purchase annuity policies issued by Scottish Widows in respect of pension schemes, individual annuity policies issued by Scottish Widows in respect of pension scheme members and/or contingent beneficiaries, residual risk policies and certain longevity insurance agreements, together with associated assets and liabilities.

The following Scottish Widows policyholders:

a)  Trustees of pension schemes that have entered into a bulk purchase annuity policy or residual risk policy with Scottish Widows

b)  Pension scheme beneficiaries of the bulk purchase annuity policies transferring to Rothesay

c)  Individual policyholders who hold an individual annuity policy with Scottish Widows which was issued as a result of a bulk purchase annuity policy moving to buy-out

d)  Lloyds Banking Group Pensions Trustees Limited in respect of longevity insurance agreements entered into with Scottish Widows.