Capita Employee Solutions secures £77 million insurance deal for pension fund

Akash Rooprai, 05 October 2018

Barry Wehmiller International Retirement Benefits Scheme has insured benefits outside Pension Protection Fund (PPF)

 

Capita, working with the Trustee of the Barry Wehmiller International Retirement Benefits Scheme, has secured insurance with Scottish Widows for benefits for the scheme’s members in a £77 million transaction.

Following the insolvency of the sponsoring company in November 2016, the Barry Wehmiller International Retirement Benefits Scheme had insufficient assets to insure full benefits, but sufficient assets to avoid falling into the Pension Protection Fund (PPF), which is a pensions lifeboat that pays compensation to members at less than full benefits.

The professional trustee on the board of the Barry Wehmiller International RBS (the “Scheme”) is Link Pension Trustees Limited (formerly Capita Pension Trustees Limited), which is part of Link Asset Services. The Trustee was advised throughout the process by Pinsent Masons and Capita Employee Solutions.

Working on behalf of its client, Capita ran its own tender process among pension insurers and has secured insured benefits, in a £77 million transaction with Scottish Widows.

Rosemary Kennell, Link Pension Trustees Limited, Chair of the Trustee Board, said: “We are pleased to announce that benefits for members above PPF level have been insured with Scottish Widows. The scheme and members have gained from the competitive rates in 2018 and the tender process has secured not only comprehensive insurance at a competitive cost, but also helped protect the pensions of the scheme’s members.”

Akash Rooprai, head of pensions risk management, Capita Employee Solutions, said:

“We are very pleased to have been able to help the Trustee complete this transaction. We managed a very competitive bidding process and were able to assist the trustee in securing great value.”

Emma Watkins, director, bulk annuities at Scottish Widows, added:

“We are delighted to complete this transaction to insure the deferred and pensioner liabilities; particularly as we have been able to help the trustee secure pensions well in excess of those guaranteed by the PPF.”

Capita Employee Solutions is part of Capita’s new People Solutions division. For the first time, the division brings together all of Capita’s HR products and services under one roof. The new division provides core services for the entire employee life-cycle – from hire to retire – including recruitment; learning and benefit; pensions administration and consultancy solutions. Further services include attraction, screening, performance management and payroll services.

About the author

Akash Rooprai Head of Pensions Risk Management

Akash Rooprai

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As one of the UK’s leading advisers on pensions, we provide actuarial, investment and consulting services for defined benefit (DB) pension schemes of all sizes, including journey planning, funding and risk management strategies.

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