An industry first - advising the trustees of Stagecoach Group Pension Scheme

In the UK, a significant proportion of defined benefit (DB) scheme assets are held by a small number of large schemes. These large schemes have unique needs and face different challenges compared with smaller ones.  As advisers to over half of the 20 largest schemes in the UK, and one in five with assets above £1bn, we understand these different needs and are sharing our insights through a series of case studies.  

In our latest case study, we explore an industry first for the Stagecoach Group Pension Scheme, where strong funding created opportunities beyond the traditional choice between buy-out and run-on. In reframing the challenge, we helped the trustees and sponsor pursue a solution that offered greater value and better alignment with their objectives.

• The client’s scenario: how transformational funding improvements and a desire for settlement exposed the limitations of a binary run‑on versus buy‑out decision.
• Reframing the problem: why focusing on underlying objectives, rather than prescribed solutions, unlocked a broader and more valuable range of endgame options.
• Exploring alternative routes: how testing a wide spectrum of structures, from run‑on variants to innovative settlement models, revealed new ways to balance certainty, value and member outcomes.
• Regulatory engagement and governance: how early, open engagement and strong governance supported responsible innovation within the regulatory framework.
• Delivering better outcomes: how strategic continuity and comparative analysis helped align sponsor appetite, trustee duties and an improved member experience.

Read our case study

You can catch-up on the first three case studies in our series by clicking below, or by accessing our hub page:

• Understanding the power of surplus sharing
• Valuable sounding board for an in-house team
• Delivering a bespoke risk transfer solution for a large DB scheme

If you have questions or would like to discuss further, get in touch.

This communication has been compiled by Hymans Robertson LLP® (HR) as a general information summary and is based on its understanding of events as at the date of publication, which may be subject to change. It is not to be relied upon for investment or financial decisions and is not a substitute for professional advice (including for legal, investment or tax advice) on specific circumstances. HR accepts no liability for errors or omissions or reliance on any statement or opinion. Where we have relied upon data provided by third parties, reasonable care has been taken to assess its accuracy however we provide no guarantee and accept no liability in respect of any errors made by any third party.