The Debenhams Retirement Scheme (the Scheme) received a lot of press coverage when the retailer appointed Administrators. The news that the Scheme trustees have agreed a transaction with Clara Pensions (Clara), allowing the Scheme to exit PPF assessment and for all 10,400 members to join Clara and receive their originally promised pensions in full (along with back-payments to reflect any previous reductions) is therefore very welcome.
The restoration of members’ full pension entitlement represents an extremely positive outcome for the Scheme and its members and one which was far from certain on the failure of its sponsor, with effective teamwork at the heart of this achievement.
Vidett acts as professional trustee to the Scheme in the role of Chair of the Trustee. Appointing a professional trustee involves more than one individual – being effective in the role is a team effort, especially in cases as complex as this. The current Vidett team includes Mark Cliff, Jim Robson and Tom Stockley, who brought invaluable expertise in endgame planning, risk management and risk transfer solutions for schemes in PPF assessment, along with Kerry Jones who added project management, scheme secretarial and compliance expertise. In the latter stages of the transaction, the Scheme trustees also drew on the skills of Vidett’s member communication specialists.
The overall team is even wider, combining the Trustee Board, PPF, the Scheme’s advisers – Hymans Robertson, Osborne Clarke, Broadstone, Mayer Brown and Interpath Advisory – Clara and The Pensions Regulator (the Regulator). It is all these parties working effectively together, pulling in the same direction to get to the best possible solution, that led to this excellent outcome for members.
Vidett’s Tom Stockley (Client Director) commented:
“We are proud of our role in agreeing a transaction to deliver enhanced security for Scheme members on its journey to buy out. It is especially pleasing members will now receive their full benefit entitlement and we’d like to thank them for their patience as the Trustee Board navigated through this challenging period.
In particular, the Vidett team would like to thank Osborne Clarke, Hymans Robertson, Broadstone, Mayer Brown and Interpath Advisory who have worked tirelessly with us and the rest of the Trustee Board to deliver such a positive outcome. Final thanks go to the PPF and the Regulator for their supportive and collaborative approach.”
To learn more about the work we did as professional trustee to the Debenhams Retirement Scheme, contact Jim Robson, Mark Cliff or Kerry Jones.
