Mutual shipping insurance company

The challenge

Scheme Actuarial and Investment Consultancy services are provided by other firms and Broadstone provides corporate advice. The investment strategy had already been reviewed and the Company wanted to look at the opportunities to control the costs but not disrupt its good employee relations. The Scheme has been closed for several years and has a maturing membership profile.

The solution

We carried out a high level review to identify which changes to the Scheme would make significant savings. This included looking at full closure of the Scheme, reducing future benefits, controlling the increases in accrued benefits, member contributions, enhanced transfer value and pension increase exchange exercises.
In addition, in order to reduce funding volatility it was decided to buy annuities to secure benefits for some of the current pensioner members. This was done on a selective basis to maximise value within the budget set.

The outcome

The Company decided to restrict the increases to pensionable salaries as this had the benefit of reducing the deficit immediately and providing greater control in the future. The Trustees and their advisers agreed to the Company’s proposals and the potential savings identified were nearly £6m. In addition, good employee relations were maintained.

Our specialist insurance broking team ensured that the pensioners had annuities successfully set up at a cost much lower than the Scheme Actuary had expected.

Get in touch

Broadstone is a team of experts who are passionate about the ever-changing world of pensions and benefits. As such, they have hundreds and thousands of ideas, views and events to share with you to meet your business needs. Our business believes and promotes a people first culture, both internally and to you, our clients.

We believe in our core values and the culture they deliver. We know that when we all work as a team and combine our vast reservoir of expertise and knowledge, we will deliver results to our clients, maintaining the personal touch that can be so often missing in today’s business world.

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