Independent Trustee Dalriada completes first-ever transfer of contracted-out scheme to FAS
8th February, 2011
Independent Trustee, Dalriada Trustees Limited, has today successfully completed the transfer of one of two schemes to the Financial Assistance Scheme (FAS). Together, these two schemes represent the first contracted-out pension schemes to transfer to FAS.
The transferring scheme is the NA Motors (1984) Pension Scheme whose sponsoring company, a Ford car dealership formerly based in Newton Abbot, Devon, began winding up in 1998 when it lost its franchise. Most of the scheme’s members still live around the Newton Abbot area.
Dalriada, which specialises in scheme terminations, was appointed as Trustee of the scheme in 2009 in order to manage the transition to FAS. They have now secured members’ benefits that, prior to the creation of FAS, could otherwise have been substantially reduced or even lost altogether.
Managed by the Board of the Pension Protection Fund, FAS makes payments to top up scheme benefits for eligible members of schemes that are in wind up. They do this by paying assistance to members so their overall benefit is topped up to a maximum of 90 per cent.
Dalriada director, Connie Johnstone, who led the project said: “We are delighted with this result and what it means to the members. Throughout the process, we have had superb help from our FAS caseworker, and from Xafinity, who provided admin and actuarial backup. In particular, I would like to mention Xafinity’s admin service in Stirling which was right up there with the best I have ever come across.”
“Unfortunately the reality today is that many schemes winding up are often seriously underfunded. Many do not have a solvent sponsoring employer which makes FAS invaluable to members and their families.”
“Dalriada currently has a significant number of schemes at different stages in the FAS process, all with their different issues, which has enabled us to build up detailed expertise in this area. We are proud of this ‘first’ especially as we were trustee of one of the first three schemes to transfer to the Pension Protection Fund (PPF) in December 2006. In what has been a busy past year, we have also transferred four more schemes to the PPF with another three due to transfer before the end of March.”
For further information please contact Bill Shaw on 07974 720669 or firstname.lastname@example.org