Railpen, the UK’s rail workers’ pension fund with £34bn (€40.5bn) in assets, has sold its third-party pension administration (TPA) business to Broadstone, after two decades of servicing external clients.
The deal will involve the transfer of several dozen TPA clients, including the Electricity Supply Pension Scheme, and some 150,000 members. The third-party clients are currently serviced from an office in Coventry.
The pension fund announced today that the decision follows a strategic review of the evolving defined benefit (DB) pensions landscape.
“As schemes increasingly seek scale and specialist capabilities, Railpen identified Broadstone as the ideal partner to continue delivering high-quality administration services to its valued TPA clients and members,” it added.
The TPA business being transferred covers more than 20 pension schemes, representing the retirement savings of more than 110,000 members across the UK.
Andy Bord, chief executive officer at Railpen, said, “In Broadstone we have found a partner that provides a continued commitment to the highest levels of service to members and a strong client-partnership model.”
Railpen’s TPA employees will transfer to Broadstone under TUPE, ensuring continuity of service and conditions.
In an interview with IPE, Bord said Railpen launched a new four-pillar operating strategy in January. Deriving from strategic goals set by the Railways Pension Scheme Trustee, he said the operating strategy encompasses simplicity, value, organisational fitness, and staff empowerment.
Board added that simplicity means not introducing complexity where it’s not needed; value involves making sure returns and operational efficiencies flow to members; and fitness for the future includes a ‘member-first’ strategy.
Commenting on the acquisition, Tony Gusmao, Broadstone’s CEO, added: “This acquisition further strengthens our position in the administration market and aligns with our growth strategy, by securing great talent and large respected clients.”
Read the digital edition of IPE’s latest magazine
No comments yet