Synopsis
As part of our case studies collection, this particular example involves a £100m DB pension scheme for a FTSE 250 UK based Sponsor in the transportation sector.

Background
Following the completion of a buy-in in 2018, we were appointed as Trustee to a complex pension scheme with over 1,000 members. With the Sponsor seeking to take the Scheme forwards to buyout, a buyout project was initiated in 2019.

Acting as Chair to a 12-member Project Board, we were responsible for dealing directly with several key figures:

  • The Sponsor;
  • The Chair of Trustees;
  • The Sponsor’s in-house Pensions Administration team;
  • And a team of advisers.

Solutions
Under our guidance as Chair, the Project Board worked extremely well together. Dynamic decision making was brought to the forefront through our fortnightly online meetings. Discussing activity in real-time enabled effective decision making, whilst encouraging all stakeholders to work together collaboratively.

Our collaborative approach enabled transparency, speed, and diversity of thought throughout the process, as well as unblocking any issues quickly.

The Scheme was required to be an early adopter of GMP equalisation, including finding unique solutions to manage equalisation for past transfers without disrupting the deal execution timetable.

Acting as the key facilitator between the Insurer and the Project Board, enabled us to build a great relationship between the two parties. Developing great relationships with the Insurer resulted in additional flexibility when required, increased trust and a streamlined communication channel.

Results
A successful buyout was achieved in September 2021 with a surplus returned to the Sponsor.

The project displayed successful examples of collaboration, effective member communications and consultation. As a result, we have since replicated the same approach with other schemes on their path to buyout.

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