Bulk transfer from SHPS, including DC provider review

The background

An Association that participated in the Social Housing Pension Scheme (SHPS) felt a lack of control over its own destiny. It wanted the ability to have more control over its pension exposure and to manage its own defined benefit pension liabilities, which wasn’t possible within the SHPS structure. In addition, it wanted to be able to review the market of DC providers, to ensure it was offering a DC pension scheme which was market leading, with good value charges, high quality communications and wide access to investments and flexibilities.

Our approach

We were able to draw on the extensive experience in our Social Housing team from previous bulk transfers from SHPS and quickly identified the optimum approach for this case, and the pitfalls to be avoided. They worked to formulate the transfer proposal in such a way as to avoid wasting time holding out for terms that would never be acceptable to SHPS and were able to efficiently and effectively project manage the transfer process.

They also drew on the wider LCP community as appropriate, including bringing in DC specialist Philip Audaer to lead a full DC provider review. Phil also led negotiations throughout the implementation phase, skilfully leading the client through the complexities.

The outcome

The Association now has its own DB scheme within TPT, giving the Association significantly more influence over aspects such as the assumptions to be used for funding the scheme, the investment strategy and the pace of funding. The transfer happened on time and in line with a challenging timescale.

The DC review was also successful, with reduced member charges and improved options for members.