On the go: The Pension Protection Fund is looking to appoint four new specialist companies to provide transaction advice to schemes in assessment that are overfunded on a PPF basis.
These schemes, known as PPF+, are defined benefit plans which entered the pensions lifeboat assessment period with sufficient assets to buy out benefits for its members over and above the amount the PPF pays.
To support these pension funds, the pensions lifeboat launched a tender on Wednesday looking for companies that will provide core services such as transaction adviser, scheme actuary and investment support.
The panel will be appointed in February 2022 and the successful companies will be awarded an initial two-year contract, with an option for two further 12-month extensions, the PPF stated.
Dan Collins, PPF’s relationships manager, explained that as the lifeboat continues to see more overfunded schemes enter its assessment period, it hopes the “specialist panel will provide consistency and efficiency to the process”.
He said: “Our aim is for these schemes to exit the PPF assessment period as seamlessly as possible and ensure they secure the best possible outcomes for members outside the PPF.”
One of the most recent examples of a PPF+ scheme is the Mowlem (1993) Pension Scheme, which entered into a £150m buyout transaction with Legal & General Assurance Society in February.
The transaction enabled the scheme to exit the PPF’s assessment period, which it entered in 2018 after the liquidation of its sponsor, Sovereign Hospital Services, which was part of the Carillion Group.
Potential applicants for PPF’s specialist panel will need to register their interest online where they can download the relevant tender documentation.
The deadline for applications is October 29 unless otherwise specified on the tender platform.
