Aon has advised the Mouchel Business Services Limited Pension Scheme (Money Purchase Section), sponsored by Kier Group Limited, on a transaction to secure all members’ benefits with Just Group, supported by the Smart Pension Master Trust.
The Mouchel Money Purchase Section was a defined contribution arrangement with a defined benefit underpin. This underpin was a promise that the scheme would top up members’ benefits if the value of their defined contribution pot was not sufficient when they reached retirement.
The underpin could not be secured in its existing state, so a change in the form of members’ benefits was facilitated, with members consulted and support provided in the form of access to educational material and independent financial advice.
The transaction also includes a move to full administration, with Just’s partnership with Smart Pension allowing different parts of members’ benefits to be managed in a linked service.
Aon provided a full range of services to enable the transaction, including strategy advice and project management, risk settlement broking, member options support and guidance, as well as defined contribution investment advice.
Geraint Jones, senior business development manager at Just, says: “By working closely with Aon’s specialist underpin team, we were able to support an innovative solution that unlocked the potential for members’ benefits to be insured and provides long-term certainty.”
In January, Aon appointed Gemma Burrows as a DC consulting partner.