Raven Housing Trust: Simplifying pension arrangements and reducing risk
20 Apr 2017 - Estimated reading time: 4 minutes
Raven Housing Trust (a client of Hymans Robertson) were grappling with ever increasing DB costs and staff inequality. They wanted to reduce pension costs and risk and harmonise pensions for their staff.
Raven's staff were spread over four different pension arrangements, ranging from two defined benefit (DB) schemes to an auto-enrolment DC scheme. Inequity across staff was vast, with them spending an average of £15,000 each year per DB employee, and £1,000 each year per DC employee. The lack of control, as well as the increasing costs of their DB scheme were also a concern.
We helped Raven implement a significant pension change programme that brought costs and risk under control and strengthened employee engagement. We advised on preferred options and the cost and engagement impact. We also facilitated a board decision on how to proceed and supported Raven through the staff consultation.
We helped Raven settle 75% of their DB liabilities, giving them more certainty going forward. All staff are now entitled to the same DC pension, removing the previous inequity.
Raven now have an outcome where the majority of staff have a better pension arrangement than previously and they have settled 75% of their DB liabilities, massively reducing their exposure to DB risk.
Alistair Russell-Smith - Partner, Hymans Robertson