Partnership has completed an enhanced buy-out of the DC section of the Imperial Home Decor occupational pension scheme. This scheme has been in wind up since October 2003 when the company was declared insolvent and was subject to a landmark legal ruling in 2011.
For the last twelve months Partnership has been working closely with both Bridge Trustees and Capita Employee Benefits, to develop a buy-out solution which would see all parties – including scheme members – secure the best possible out-comes.
This led to a deal being secured which would see the almost 140 qualifying DC members – who had been receiving interim pensions – benefit from an enhanced annuity deal worth approximately £5million. Members of the scheme who have defined benefit pensions will continue to be paid by the Financial Assistance Scheme.
David Harvey, Head of De-risking Solutions at Partnership said “Given the history of the scheme and the unique nature of their requirements, we were delighted to be chosen to work closely with all parties. We feel that the innovative solution we developed allowed the trustees to discharge their liabilities whilst giving all members genuine choice over the shape of their pension.”
Giles Orton, Chairman of Bridge Trustees said “Due to the nature of the Imperial Home Decor scheme finding the right solution for its members presented us with a challenge. Therefore, we are pleased that having worked closely with Capita and Partnership, we are able to complete this buy-out which will lead to enhanced incomes for many of the schemes defined contribution members.”
Kenneth Donaldson of Capita Employee Benefits said “Having worked hard on this deal with Bridge Trustees and Partnership for over a year, we feel that we have developed the right de-risking vehicle for the problems that we faced. Not only will it allow the trustees to discharge their obligations but also help to ensure that the scheme members receive the type of pension provision they had saved for.”
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