A quick and efficient transition to buy-out, with a seamless member experience

Background

In August 2023 our client, the trustees of a £150m scheme, completed a full scheme buy-in, securing all the remaining uninsured benefits with an insurer. 5 years earlier they had already purchased a bulk annuity policy covering a substantial portion of the pensioner liabilities with a different insurer.  

The trustees, with support from the sponsor, were keen to achieve a swift and efficient transition to buy-out and wind-up, while ensuring a thorough and comprehensive process. A key concern was maintaining a high-quality member experience throughout, including a particular focus on synchronising the administration transition dates for all scheme members across the two insurers. 

Our approach

LCP’s post-transaction specialists leveraged our strong relationships with the insurers and detailed knowledge of each insurer’s standard processes to design and agree a project plan which met both the trustees’ and each insurer’s requirements.  

Throughout the buy-in and data cleanse process, we established a track record of clear communication and consistent delivery to agreed plans. This gave the insurers confidence to accelerate their standard timetables where appropriate and to help the trustees achieve their goal of moving both bulk annuity policies to buy-out at the same time. 

LCP carefully monitored progress against the project plan, checking in regularly with the insurers. The team’s strong working relationship and deep experience of post-transaction processes allowed them to anticipate and resolve issues before they had a chance to escalate or threaten a delay in the timetable. Throughout, LCP provided regular reports on progress to the trustees.  

With the trustees’ “member first” focus in mind, at the start of the process LCP prepared a full suite of communications to explain the changes to members and ensure they understood the process of becoming a policyholder of the insurer.  This was significantly simplified by transitioning the entire membership to buy-out at the same time. 

The outcome

• The transition to buy-out for the two bulk annuity policies took place within days of one another, making sure that all members enjoyed a seamless and transparent transition to the insurers. 
• The trustees were able to deliver consistent messaging across the whole membership due to the aligned timetables – with unsolicited feedback from members post buy-out praising the smooth process and helpful communications throughout. 
• The buy-out went so smoothly that the scheme was able to wind-up three months ahead of the original target date, with the trustees’ obligations fully discharged.