As the scheme actuary, we provided advice and support to the pension scheme trustees in advance of, and during, a change in company ownership after a management buy-out.

The potential impact of the buy-out was that the security of the pension scheme could have been reduced.

Through careful negotiations with the principal employer and their advisers, we helped agree a strengthened basis for funding the scheme, a significant increase in the ongoing employer contributions and a shortened recovery plan which included a large immediate cash injection into the scheme.

The trustees also agreed a further level of security through a charge on alternative assets in case the new company was to become insolvent.

The outcome was a solution that all parties were happy with, which resulted in a significant increase in the security and funding position of the pension scheme, safeguarding the benefits of all of the pension scheme members.