Slaughter and May acted for Aberdeen Group on an innovative “run on” transaction for the Stagecoach Group Pension Scheme
Slaughters have done good things with Royal Mail to get its CDC scheme underway, now they can crow over the transaction over the transfer of the Stagecoach pension scheme to Aberdeen (who become its new sponsor.
If you’re 10 years a partner at this firm you are on £4m pa, it’s hard to feel good for this lot but they are so damned good you have to.
Under the transaction, Aberdeen has agreed to become the sponsoring employer of the Stagecoach Group Pension Scheme, a move that is set to bring significant benefits to its 22,000 members. The scheme, which benefits from a strong surplus position, will continue to “run on”.
This model ensures long-term security for the scheme, will support better inflation protection for members and includes an additional initial pension increase of c.1.5% for all members. Taken together, these represent an immediate allocation of over £50 million of the scheme’s surplus for members. The ability to invest in productive assets which the arrangement provides, also offers the prospect of further pension increases for scheme members in the future.
This follows on from our work earlier in the year supporting Aberdeen with using the surplus in the Aberdeen Group Pension Scheme: Slaughter and May is advising Aberdeen on funding DC contributions with DB surplus.
Pensions partner Chris Sharpe said:
“We have a longstanding relationship with Aberdeen Group and it was a pleasure to work with their sophisticated team on such an innovative transaction. We are pleased to be involved in a transaction that brings tangible benefits to the members of the Stagecoach Group Pension Scheme, while also being highly complementary to the objectives of Aberdeen.”
Value for money doesn’t need a cap
We ought to remember that we have some of the best lawyers in the world. Philip Bennett – the legal partner who had a night and day secretary. He wrote the CDC legislation for Royal Mail and the DWP. Worth every penny, in his retirement he’s a professor of law at Durham University
Charles Randell, who sorted out the mess our banks had got us in the Financial Crisis earlier this century earned more money in a month than any lawyer to that day – and he loved to boast about it. He went on to Chair the FCA and is a friend to this blog
Chris Sharpe ,and his successors have got Aberdeen to where they are. I hope he appreciates we appreciate him in the same way – you’ll get there my son!
For those who think there should be a charge cap on everything, remember value for money can come from engaging with rich lawyers.
Value for money should be determined by the results and the results of this deal will be felt on every road a Stagecoach member drives a bus.
The accounting team of Stagecoach, under the former Chair of Trustees Derek Coombes, all drove a Stagecoach as a bus. Derek did too. No other firm has such a history as this bus company and Aberdeen a worthy partner in this pension mutual.
Mind you , not all mergers work well! Make sure you do better than these two!
Aberdeen and Standard
