Simplifying a complex DB and DC arrangement

The challenge

The scheme largely consisted of DC benefits, but around 1,000 members also held DB guaranteed minimum pension (GMP) underpins linked to their DC savings. While the DB liabilities were relatively small, the underpin arrangement created additional administration and governance requirements, increasing complexity for the trustee. 

The trustee's ambition was clear: simplify the arrangement, improve the member experience and create a clear pathway to buyout while continuing to deliver positive outcomes for members. 

The solution

Following extensive preparation by the trustee and WTW, including GMP equalisation and member consultation, L&G worked closely with all parties to develop an integrated solution that brought together its pension risk transfer, administration and DC capabilities. 

The £14 million buy-in was completed in December 2025, after which L&G assumed responsibility for administration and established pensioner payroll arrangements to support the transition. Through strong collaboration and clear objectives, the scheme moved from buy-in to buyout in just over three months. 

The outcome

The final stage of the project saw approximately £70 million of DC assets transferred to L&G's Mastertrust. By bringing both DB and DC benefits together with a single provider, the trustee achieved its long-term objective of simplifying governance, streamlining administration and creating a more connected member experience. 

This transaction highlights how early preparation, a clear end goal and close collaboration can help accelerate a scheme's journey to buyout, even where DB and DC benefits have historically been intertwined. 

Read the full case study to learn more about the challenges, approach and outcomes.