We were appointed in 2017 to the UK Scheme of a global diversified engineering business. The Scheme was very well funded following a successful LDI strategy, but in terms of liabilities, the Scheme was very large in comparison to the Sponsor and therefore posed a significant level of risk.

A serious dispute had arisen between the Trustee and the Sponsor relating to the extension of existing security arrangements, and this had resulted in failure to complete the triennial actuarial valuation and a breakdown of trust.

Solution

The relationships between advisors had reached a point where our first task was to select new legal advisers and together we devised a solution to release the impasse. The triennial actuarial valuation documentation was completed within two weeks.

We negotiated agreement (previously blocked) between all parties to approach the buyout market, whilst quickly finalising an existing ETV/FRO exercise.  All of this above was completed within 4 months of our appointment.

As a result the Trustee and the Sponsor were able to agree buy-out terms with and insurer, leading to a small surplus and full settlement and security of members benefits.

 

“Thank you for your Herculean efforts in getting the triennial finalised in such a short time. Very clearly you were the right person for the job. I look forward to working with you in the future to secure the benefits for all parties.”
Trustee Director