We were appointed in 2015 to the UK Scheme of a long standing and stable manufacturing business that was positioning to move into new, more profitable, areas. It was facing a pension scheme that had become increasingly challenging to finance, and Trustees who were nervous of change. To finance the corporate strategy the Sponsor had proposed the sale of its traditional business.
The existing Trustees were emotionally attached to the historic business and were unwilling to engage constructively. They were advisor led and had involved the Pensions Regulator. We were brought in to replace the Trustees and worked with the Sponsor and the Pensions Regulator to agree and effect the change.
Commerciality and Forward Thinking
Resolution and implementation within set timescales was critical to success as was management of advisors. When considering the proposal, we took on board all factors, including softer points such as the motivation of the Board and its impact on future economics. The costs of the exercise were controlled by focusing advice in those areas that were specific to the proposal.
We were able to reassure the Regulator that the overly prudent view of the Trustees’ covenant advisor – facilitating constructive discussion between the Sponsor and Pensions Regulator was critical, and our close working relationship with the Pensions Regulator enabled this to happen.
Corporate profitability is exceeding expectations and shareholder value is being provided, morale at a senior level is materially improved. Importantly, both the Scheme and the Directors now share in success, with more aligned interests. The Scheme is now well on its way towards self-sufficiency, we have reduced ongoing costs by over 40% and there has been a significant improvement in the flow of information between the Sponsor and Scheme.