The Coventry Presswork Pension and Life Assurance Scheme’s members will receive full benefits again after its sponsor was bought out of administration.
Liberty House’s acquisition of metal stamping and robotic assembly specialist CovPress means that the company’s pension scheme will exit the Pension Protection Fund (PPF), according to Independent Trustee Services.
This is believed to be the first time that a scheme has left the protection of the pensions’ lifeboat following the sale of its sponsor.
The industrials group paid an undisclosed fee for CovPress, which makes parts for Jaguar Land Rover, Renault and GM. The deal, and therefore the pension scheme’s exit from the PPF, is subject to the necessary approvals.
PwC’s pensions credit advisory director Julia Yates worked with the trustees to return full benefits to the scheme’s members. “The trustee has worked closely with all the stakeholders to achieve this result that enables the scheme to continue to pay pension promises in full,” she said.
Osborne Clarke’s Jonathan Hazlett, who provided legal advice to the trustees, said: “Working collaboratively with the other advisers, we were able to put in place a legal process which allows the scheme to continue outside of the PPF and be supported by an ongoing employer.”
BBS Consultants & Actuaries’ Peter Bainbridge was the scheme’s actuary, supporting the trustee in ensuring that the future funding and risk management of the scheme were robust. Bainbridge added that the deal was a good outcome for all parties, but especially the scheme’s members.
