A pension scheme sponsored by a defunct employer that was part of the Carillion Group has agreed a £150m (€168m) “PPF+” buyout transaction with Legal & General, it was announced today.
The deal will enable the scheme to secure benefits that are greater than those which would have been provided by the Pension Protection Fund (PPF).
The Mowlem (1993) Pension Scheme entered the defined benefit lifeboat fund’s assessment in February 2018 following the liquidation of Sovereign Hospital Services Limited in connection with the insolvency of Carillion.
With the buyout deal it will now officially be able to exit the assessment without transferring to the PPF. The buyout secures the benefits of more than 360 deferred members and 650 retirees.
The trustee was advised on the transaction by Mercer, with legal advice provided by Sackers.
Chris Martin, executive chair, Independent Trustee Services (ITS), said: “We are very pleased that we have been able to work so collaboratively with all parties involved in this transaction.”
Thanking the scheme’s lead adviser as well as administrator Barnett Waddingham, Martin said the “support and collaboration of the PPF was also a key part of the process”.
NEST chooses administrator for digital future-focused scheme
Defined contribution master trust NEST has chosen Atos to design, build and administer a “digital future-focused” scheme.
According to a joint announcement, the new service, which will begin in 2023, will focus on making the most of advances in technology and data analytics to deliver personalised and tailored services to each of NEST’s members.
By the late 2020s one in three of the UK working population is expected to have a NEST retirement pot, with the scheme expected to have around £100bn (€114bn) in assets under management by the end of the next decade.
Otto Thoresen, NEST Corporation chair, said the procurement had been very competitive.
“Our aim was to find a supplier that will support our ambitions to continue to expand the scheme for an increasingly digital world, improve our service to customers and harness advances in technology to further increase efficiency while reducing costs,” he said.
“We are confident the new contract will deliver significant benefits to our customers whilst allowing us to keep costs low and ensuring our service continues to be robust and secure.
“We are now focused on preparing for a secure and stable transition of services in 2023 and ensuring this process works smoothly for NEST’s customers.”
NEST chief executive officer Helen Dean said the provider was looking “to take NEST to the next level, advancing our digital scheme and continuing to provide a world class service, for working people”.
Atos’s contract will last for a minimum of 10 years with an optional extension period of up to five years and the option of an additional period of up to three years for exit.
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