UK to Review FAA Pension Rules After £1.2 Billion Stagecoach-Aberdeen Deal
Updated
Updated · Professional Pensions · Jun 16
UK to Review FAA Pension Rules After £1.2 Billion Stagecoach-Aberdeen Deal
3 articles · Updated · Professional Pensions · Jun 16
Summary
A £1.2 billion pension transfer between Stagecoach and Aberdeen has triggered a government review of flexible apportionment arrangement rules, with ministers planning a consultation on whether safeguards should be tightened.
Torsten Bell said the December deal complied with FAA law but used the 2012 mechanism in a way not anticipated, allowing Aberdeen to take on another employer's defined benefit scheme assets and liabilities.
The review will test whether FAA rules need protections closer to those in the DB superfunds framework, especially where providers may run schemes commercially or for profit.
LCP, which advised Stagecoach, backed stronger formal requirements and said the transaction was expected to improve member outcomes while showing how innovation and safeguards could work together.