The Trustee of the Uniq plc Pension Scheme, which completed both a ground breaking deficit-for-equity swap and an innovative insurance risk transfer in 2011, confirms that it has received its withdrawal notice from PPF assessment.
The Uniq plc Pension Scheme (formerly the Unigate Group Pension Scheme) and its 20,000 members entered a Pension Protection Fund (PPF) assessment period on 24 March 2011. This was part of a complex restructuring exercise under the terms of a Regulated Apportionment Arrangement, whereby the Trustee took effective control of 90% of Uniq plc's shares and in conjunction with Uniq plc's management and the PPF oversaw the sale of the business to Greencore plc. The net outcome for the Trustee was an additional £101m paid to the Scheme, which helped to secure a buy-in policy with Rothesay Life that guarantees benefits at no less than PPF levels. The Trustee was advised throughout by LCP.
The Pensions Regulator has today issued a report explaining the role it played in the RAA process and noting that: "The Uniq case is a good example of what close and positive co-operation between the pension trustee, sponsoring employer, regulator and PPF can achieve."
Chris Martin of Independent Trustee Services Ltd, Chairman of the Trustee Board, commented: "Although the pension scheme is still in deficit and members will not receive their full benefits, the success of the deficit-for-equity swap and insurance buy-in ensures that benefits for members will be at least equal to those under the PPF, with the possibility of a small top-up above that level. We would absolutely echo The Pension Regulator's sentiments in terms of being able to deliver better outcomes for members when there is positive engagement and co-operation between the trustee, sponsor, their respective advisers and The Pensions Regulator. It is hard to overstate the value created by this positive approach for the members of the Uniq Scheme."
Aaron Punwani, partner at LCP, the Trustee's actuarial advisers, said: "The Uniq case is unprecedented in both the speed at which it went through PPF assessment and the innovative solution developed to secure members' benefits with an insurance contract, with the active support of the PPF. We are pleased to have been able to help the Trustee achieve the best outcome for members in the circumstances.
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