Our role
Led strategic review and transaction delivery
The scale
£1.2 billon scheme, 22,000 members
The outcome
Immediate uplift and improved future benefits
How we helped restructure a £1.2 billion pension scheme to deliver immediate improvements and stronger long-term outcomes for members.
Setting the scene
Defined benefit pension schemes are reassessing how to manage strong funding positions and deliver better outcomes for members. For the Stagecoach Group Pension Scheme, this meant exploring alternatives to a traditional insurance buyout for its 22,000 members.
The pension fund trustee’s priority was to secure long-term stability while exploring options to increase member benefits. This required identifying a structure that could use the scheme’s surplus to improve outcomes without increasing risk.
Our work
PwC acted as lead adviser to the trustee, supporting a review of the scheme’s long-term options and helping define a clear endgame approach. We assessed potential outcomes for members under different approaches and helped identify the preferred solution.
Working with the trustee and other stakeholders, we helped design and deliver a transaction that saw Aberdeen Group plc replace Stagecoach as the scheme’s sponsoring employer, taking on responsibility for funding and investment management. This enabled the scheme to adopt a “run-on” model, allowing it to continue operating while using its funding position to improve outcomes for members.
We supported the delivery of the transaction, bringing together multiple parties to align on approach and implement a structure that met regulatory expectations and strengthened the scheme’s long-term position.
"PwC played a critical role in designing and delivering this landmark transaction. Acting as lead and coordinating adviser, their transaction expertise and regulatory engagement were instrumental in helping us achieve a highly ambitious set of objectives, improving member outcomes, facilitating an employer exit and enabling value sharing, while maintaining a robust approach to risk management."
John Hamilton
Chair of the Trustee of the Stagecoach Pension Scheme
The impact
The transaction delivered immediate benefits for members and strengthened the scheme’s long-term position. Members received an uplift to their pensions and enhanced protection, with the potential for further increases over time.
The structure also strengthens the scheme’s long-term security, while allowing surplus to be used to prioritise member outcomes.
Beyond the immediate benefits, the project shows how well-funded schemes can take alternative approaches to improve outcomes while maintaining financial stability.
Contact us
