The Broadcasting Support Services Pension Scheme has completed a £6m buyout from Aviva, providing pension benefits to 59 members.
Although the scheme had earlier entered the Pension Protection Fund (PPF) assessment period after the sponsoring employer filed for bankruptcy, it exited assessment when its assets were found to be more than sufficient to secure benefits at the PPF level.
“When issues became apparent to First Actuarial and the scheme manager, Bestrustees, to the sponsoring employer, we took action to reduce investment risk,” explained First Actuarial partner Keith Williams. “It turned out to be the first step towards protecting members’ benefits.”
The actuary and program administrator, First Actuarial and Bestrustees were then able to marshal all available assets to secure the member benefits of an exchange buy at Aviva, before preparing the program for buyout.
To this end, it used a payment from the trustee to secure additional member benefits beyond PPF entitlements.
Bestrustees chairwoman Ann Rigby described the buyout as a “great outcome” for scheme members, stressing that the deal was a demonstration of what can be achieved for smaller schemes by working closely with advisers committed to doing what is in the best interests of members.
“The retention of two dedicated member trustees on the board has made a significant contribution to the member engagement process,” she said.
“This positive outcome for members was due in part to our close working relationship with Bestrustees throughout this extended period,” Williams added.
“We had regular review meetings with Aviva, who were also great to work with – we all appreciated their pragmatic approach.”
