Sole Trustee: Combined Service implementation

The issue

A LawDeb sole trustee client had recently undergone a couple of key developments, namely:

  • The payment of a substantial contribution to the Plan as part of the latest triennial valuation, and;
  • The recent acquisition of a company, leading to it wanting time to focus on its own integration needs

While carefully monitoring the impact of these developments the LawDeb team appointed as sole trustee to the scheme recognised that the client would benefit from minimising costs and improving effective reporting in relation to the Plan’s on-going management. LawDeb proactively approached the client to discuss this and suggested as part of the solution, a change of bundled service provider as this was noted as the largest cost to the Plan.

What we did

LawDeb is the appointed independent trustee across many schemes to which Lane Clark & Peacock (LCP) is also appointed in one or more roles. We work together closely on these schemes and LawDeb has been particularly impressed by LCP’s work and client service.  This close working relationship has led to us offering a combined service proposition for our sole trustee clients.

We felt the LCP and LawDeb combined service would be a good fit for this Plan and client’s specific needs and proposed to the Plan’s Sponsor that LCP would provide the following services:

  • Scheme actuary
  • Investment adviser
  • Scheme administrator

 This combined service fits the specific requirements of this Plan by:

  • Providing a fully joined-up service
  • Including direct access to a market leading specialist de-risking team
  • Having experience with the investment challenges facing the Plan
  • Delivering a tailored technology solution to support the Plan
  • Identifying efficiencies to be made to the Plan management
  • Being competitively priced
  • Ensuring an effective and efficient working relationship with the sole trustee

These efficiencies and results could potentially be had by any sole trustee client wanting a cost effective solution to scheme governance and management.

As part of the new combined service, we also moved the Plan Secretary role to be provided from within LawDeb, this brought further operational efficiencies and reduction of costs, whilst ensuring effective management and completion of Plan tasks.

Result

The client accepted the proposal and was comfortable with LawDeb’s due diligence. The implementation was virtually seamless. LCP were on board within a very short space of time and were well prepared for the next stewardship meetings, which replace traditional Trustee Board meetings for LawDeb’s sole trustee appointments, to present timely and bespoke investment strategy proposals to the client.

Because the combined services platform encompasses a joint Investment Sub-Committee between LawDeb and LCP, the Plan benefits from its efficiency and new investment strategy and funds were agreed within a very short time, just 2 weeks, as the governance and research to recommend this course had already been completed.

Likewise LCP’s actuarial team were able to turn around the Plan’s triennial factor review exercise very quickly, in time for the meeting, with advice and proposals in line with client and Trustee thinking.

In the end the client has seen a cost saving of 15% and a more effective service.

To find out more about the combined service contact Kate Cullen

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