Business
Aberdeen takes on Stagecoach Group Pension Scheme
Aberdeen Group PLC has agreed to become the sponsoring employer of the Stagecoach Group Pension Scheme, which has over 22,000 members and a strong funding position. This arrangement will result in an immediate allocation of over £50 million of the scheme's surplus for members, including an initial pension increase of approximately 1.5%, and will add around £1.2 billion to Aberdeen's assets under management. Aberdeen will manage the scheme's assets and funding, receiving a minority share of any future surplus, with no significant impact on its capital position. This transaction aligns with Aberdeen's strategy of running on well-funded defined benefit schemes and leverages its investment expertise in productive assets. Disclaimer*
About this update from Aberdeen Group Plc
[{"type":"text","content":"\n\nAberdeen Group plc ('Aberdeen')\nAberdeen to take on Stagecoach Group Pension Scheme\n \n· Over 22,000 pension scheme members to benefit from increases in pensions and better inflation protection\n· Scheme's strong funding position allows Aberdeen to take over from Stagecoach as scheme sponsor and adds c.£1.2bn of assets under management (\"AUM\")\n· Strong alignment between Aberdeen and trustee supports investment in productive assets, and provides opportunity to grow surplus to increase members' benefits, with a minority share of surplus to Aberdeen\n· Transaction follows Aberdeen's announcement earlier this year to run on its own defined benefit (\"DB\") pension scheme whilst unlocking the value of its surplus\n \nAberdeen has agreed to become the sponsoring employer of the Stagecoach Group Pension Scheme (SGPS), 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 £50m 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.\nUnder the arrangement, Aberdeen will take on responsibility for the scheme's funding as well as the management of the scheme's £1.2bn of assets. Aberdeen will receive a minority share of any future distributed surplus with the majority earmarked for members, all subject to robust guardrails that ensure the scheme's financial security. Given the scheme's strong funding position, this will have no significant impact on Aberdeen's capital position.\nThis innovative transaction supports the Stagecoach Group's objective of simplifying its business through settling its arrangements with the SGPS and ensures the interests of pension scheme members and Aberdeen are closely aligned.\nIt follows Aberdeen's decision earlier this year to run on its £2.6bn DB pension scheme, with surplus unlocked for the benefit of Aberdeen and the scheme's me...