Stagecoach transfers DB scheme to Aberdeen in run-on deal (Pensions Expert)
U.K. investment firm Aberdeen has agreed to acquire Stagecoach Group's £1.2 billion defined benefit pension scheme with approximately 22,000 members in a "run on" arrangement. Under the deal, Aberdeen becomes the sponsoring employer and will manage the scheme's assets while receiving a minority share of future surplus, with members benefiting from a 1.5% immediate pension boost and improved inflation protection. The transaction allows Stagecoach to exit its DB pension obligations while the trustee board views it as an opportunity to leverage the scheme's existing surplus for better member outcomes through Aberdeen's investment expertise. Industry advisers expect this deal to trigger similar transactions, reflecting a growing trend of well-funded DB schemes being treated as valuable assets rather than liabilities. [Source: Pensions Expert]
