Large full scheme buy-out in the UK (53,000 members)

The challenge

We were jointly engaged by the sponsor and trustees to undertake fast pre-transaction data due diligence on the pension scheme.

The sponsor was keen to transact and move to buy-out quickly and wanted to ensure that they were not at undue risk of a prolonged buy-in to buy-out exercise or a significant true-up later in the process.

Our approach

We aligned our approach to that which we adopt for insurers, which included: data analysis, sample calculation testing, assessment of historic administration approach, assessment of missing beneficiary likelihood, and review of documentation against custom and practice.

The outcome

We delivered our review within 4 weeks to enable the client to transact at an opportune time in the market. During that time, we delivered weekly “red flag” reports to give early warning of any material issues.

We identified a number of inconsistencies, which the client then went on to address to ensure a smooth buy-in to buy-out process.

Ultimately, the scheme was able to transact a full buy-in with no material data issues.