Case Study: Pegasus delivers full buy-in (Pegasus)
Background
During 2021, Pegasus was appointed as Project Manager by the Trustee of two DB Schemes (with combined assets of £1.7bn) to complete a Scheme Merger and full Buy-in. The Schemes included both pensioner and deferred members. The Trustee and Sponsor had agreed these main objectives and had tied this into an agreement with how any potential surplus would be treated, providing full transparency for both parties of achieving their distinct goals.
Actions taken
The overall timeframe for both objectives to be achieved was 11 months – a very challenging timescale. Careful management of the various workstreams was required and a robust project plan was set up to run both workstreams concurrently, taking note of the resource requirements from key advisers at specific times throughout the year.
Inevitably, there were hurdles to overcome along the way, which required a collaborative and proportionate approach from all advisers, harnessed by directing the appropriate advisers to work together on offering solutions. We engaged deeply with the Administrator to fully understand the data complexities and this allowed us to provide meaningful support in achieving resolutions. Both the Trustee and Sponsor were kept fully appraised of progress and decisions were made in an agile and efficient manner when required by ensuring the right advisers were available to join ad-hoc calls as required.
Outcome
The Schemes were merged successfully and entered a full buy-in contract before the end of 2021 with their preferred Insurer. This was a significant achievement for all involved and resulted in additional security for the members of the Scheme.
