Completing a buy in with GMP underpin

Context

IGG was brought in to support the Trustee Board of a small UK pension scheme at a pivotal moment. The scheme, which included Defined Contribution (DC) benefits underpinned by Guaranteed Minimum Pension (GMP) liabilities, was seeking to simplify and de-risk by separating the GMP, securing it through a buy-in, transferring the DC assets to a Master Trust, and winding up the scheme. The sponsor, a small UK entity with limited pensions knowledge and a key contact based in the US, needed a trusted partner to manage the process end to end with minimal disruption and clear guidance.

Challenge

The project involved navigating complex technical and regulatory issues while managing multiple stakeholders, including a sponsor unfamiliar with UK pensions and constrained by time and geography. Timely execution was critical, and success relied on efficient coordination of advisers, clear communication, and careful risk management to keep the process on track.

Our Approach

IGG immediately established a pragmatic and achievable plan in collaboration with the Trustee Board and scheme advisers, taking the lead on technical matters while ensuring Trustees and the sponsor were kept appropriately informed. Our experience allowed us to manage adviser input proactively, streamlining decision-making and delivery. Communications were tailored to be efficient and effective, with updates timed to suit the sponsor’s availability and understanding. We maintained proportionate governance, built strong working relationships with advisers, and addressed issues before they became obstacles. To reduce the burden on the sponsor, we prepared key documentation for review and participated in discussions with their external legal counsel to provide clarity and support.

Outcome

Within just 18 months of our appointment and only 7 months after initiating the buy-in process, the scheme successfully completed the full GMP buy-in. Following the transaction, we maintained project momentum through structured workstreams and regular reporting. The wind-up is now well advanced, with early planning and proactive risk management enabling a smooth and efficient path toward completion.