Under the transaction, Aberdeen has agreed to become the sponsoring employer of the Stagecoach Group Pension Scheme, a move that is set to bring significant benefits to its 22,000 members. The scheme, which benefits from a strong surplus position, will continue to “run on”. This model ensures long-term security for the scheme, will support better inflation protection for members and includes an additional initial pension increase of c.1.5% for all members. Taken together, these represent an immediate allocation of over £50 million of the scheme’s surplus for members. The ability to invest in productive assets which the arrangement provides, also offers the prospect of further pension increases for scheme members in the future.
This follows on from our work earlier in the year supporting Aberdeen with using the surplus in the Aberdeen Group Pension Scheme: Slaughter and May is advising Aberdeen on funding DC contributions with DB surplus.
Pensions partner Chris Sharpe said: "We have a longstanding relationship with Aberdeen Group and it was a pleasure to work with their sophisticated team on such an innovative transaction. We are pleased to be involved in a transaction that brings tangible benefits to the members of the Stagecoach Group Pension Scheme, while also being highly complementary to the objectives of Aberdeen."
Lydia Balon / Trainee, Laura Sythes / Trainee