Partnership has bought out the defined contribution section of the Imperial Home Decor pension scheme, which will see almost 140 DC members benefit from enhanced incomes.
The firm’s £130m pension scheme has been in wind-up since October 2003 when the company was declared insolvent with a £40m pension deficit.
Partnership says it has worked closely with Bridge Trustees and Capita Employee Benefits to put together the buy-out.
The deal sees the 140 qualifying DC members, who had been receiving interim pensions, benefit from an enhanced annuity deal worth approximately £5m.
Scheme members with defined benefit pensions will continue to be paid by the Financial Assistance Scheme.
Partnership head of de-risking solutions David Harvey says: “Given the history of the scheme and the unique nature of their requirements, we were delighted to be chosen to work closely with all parties.
“We feel that the innovative solution we developed allowed the trustees to discharge their liabilities whilst giving all members genuine choice over the shape of their pension.”
Capita Employee Benefits’ Kenneth Donaldson says: “Having worked hard on this deal with Bridge Trustees and Partnership for over a year, we feel that we have developed the right de-risking vehicle for the problems that we faced.
“Not only will it allow the trustees to discharge their obligations but also help to ensure that the scheme members receive the type of pension provision they had saved for.”