The Ilford Pension Scheme has successfully transferred into the Pension Protection Fund (PPF) after an assessment period of just a year and a day – setting a new benchmark for the pensions industry.
Ilford’s completion period was attributable to the close collaboration between the scheme administrators Mercer, the independent trustees ITS and the PPF, as well as to efficient planning and processing.
Neil Bolding, Mercer’s Head of Discontinuance Services, commented: “This was about having smart project management, streamlined processes and, above all, a joined-up and committed approach between all parties so decisions could be taken without delay. An added advantage was that the scheme had undertaken a number of discontinuance activities including data-cleansing exercises in advance of the assessment period.”
Dan Collins, Scheme Delivery Consultant at the PPF, commented: “This was a fantastic accomplishment, given the history, complexity and number of members involved in this high profile case, and I know first-hand the huge efforts that went into this by the trustees, administrators and PPF associates.”
Chris Martin,Managing Director of Independent Trustee Services Limited, commented:“The transfer of Ilford is testament to the value of a specialist trustee team working with a focused third-party administrator – each understanding and delivering to a set of objectives shared with the PPF. It’s a case study in what can be achieved.”
The structured PPF assessment involves a thorough audit of the pension scheme across the whole of its history to ensure all entitlements to the scheme benefits are both accurate and complete. Mr Bolding commented: “Many schemes entering the PPF assessment period have complex histories with different benefit structures and bases inherited from past acquisitions and disposals. All liability entitlements need to be accurate and verified, and this can only be achieved through robust project management, utilisation of experience and skills, and a streamlined and pragmatic approach to transfers.”
He added: “A critical part of the assessment involves a thorough check and update of scheme membership and individual member data. Increasingly, schemes are paying attention to data cleansing as part of their routine administration to comply with the Pensions Regulator’s new record-keeping requirements. This pays dividends in any de-risking and wind-up situations where they can secure shorter timescales and reduced liabilities for the fund.”
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