Bulk transfer
out of SHPS, remaining within TPT

Case studies

The background 

Radian participated in SHPS but felt a lack of control over its own destiny. It wanted the ability to make additional contributions as and when its funding permitted, which was not possible within the SHPS structure. In addition the inherent cross subsidies within SHPS at that time meant that it was paying a considerably higher level of contributions than was its ‘fair share’.

Our solution

Mike advised Radian on the issues around isolating its SHPS deficit by transferring out of SHPS into their own segregated section within the wider TPT, and led on the negotiations with the various parties involved. Mike was able to analyse Radian’s participation in SHPS and identify the pros and cons of a transfer. Mike used his extensive experience of SHPS to help formulate the
transfer proposal in such a way that would be acceptable to all sides. This developed into leading the negotiations and agreeing a deal that minimised the amounts of any exit charge payable.

The outcome

Radian now has its own scheme within TPT. They have significantly more influence over aspects such as the assumptions to be used for funding the scheme, the investment strategy, the pace of funding, and the benefits to be offered. They are also protected against any worsening of the covenant of the other employers within SHPS, and no longer exposed to subsidising the pension
benefits of other employers.

How we can help

We help pension scheme trustees and sponsors to determine the ultimate destination for their scheme and help them put together a plan to get there, including how to effectively manage the risks they face along the way.

Our social housing team has the skills and knowledge to help you consider the pensions issues affecting your organisation. 

Get in touch.

If you would like to know more about our services and how we can help you with pensions and benefits.

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