Case Study: a multi-billion pound scheme unlocks surplus sharing with Hymans Robertson

a multi-billion pound scheme unlocks surplus sharing with Hymans Robertson

The customer, a multi-billion pound pension scheme, was preparing for a buy-out due to its significant surplus. The trustees, advised by Hymans Robertson, faced the challenge of revisiting this strategy to instead run the scheme for longer, which required creating sufficient incentives and a framework for sharing the surplus among stakeholders.

Hymans Robertson helped the client design and implement a surplus sharing agreement. The solution included securing enhanced benefits for DB members, protecting the scheme's readiness for a future buy-in, and allocating most of the surplus to fund the employer's defined contribution pension provision. The result was a mutually beneficial path that allowed the scheme to retain more investment risk while fairly sharing the surplus and maintaining future options.