The trustee board for the British Regional Airlines Group Pension Scheme, the pension fund that caters for the workers of the British airliner Flybe, met Friday morning to make an initial assessment of the impact of the company’s administration on the scheme.
The board of trustees, BRAL Trustees, said it wanted to determine how best to secure the scheme’s position in light of the recent news – Ernst & Young was appointed administrator for the airliner as it collapsed Friday 6 March at 3.30am UK time.
The Isle of Man Financial Services Authority announced the scheme, for which Flybe is the principal employer, is an Isle of Man authorised defined benefit (DB) pension fund as per the Retirement Benefits Schemes Act 2000 (RBSA 2000). It is closed to new members and future accrual.
This means that pension fund members do not fall under the jurisdiction of the Pension Protection Fund (PPF).
“At this time we continue to engage with the trustee and the administrator of the pension scheme in relation to the impact of Flybe’s administration on the pension scheme,” the Isle of Man authority said.
Dan Mindel, managing director at Lincoln Pensions, said: “There are a number of DB schemes where the fund or the principal employer is not registered in the UK and, therefore, do not qualify for protection from the [PPF].
“This case, in particular, highlights the need for trustees of such schemes, especially where the sponsor is having difficulties, to consider taking the necessary steps to restructure the scheme to ensure the members have that lifeboat in case the worst happens.”
According to the fund’s latest annual report, its liabilities were estimated to be close to £170m (€192m) across 1,350 members, with an overall deficit of £11.6m as of November 2018.
Scottish scheme launches ESG ezine for members
The Lothian Pension Fund (LPF), the second largest Local Government Pension Scheme (LGPS) provider in Scotland, has launched the first issue of its economic, social and governance (ESG) ezine ENGAGE.
The publication, which will be published twice a year, is designed to provide members with an insight into the fund’s approach to ESG and its responsible investment activities.
Doug Heron, LPF’s chief executive officer, said: “At LPF, we take a holistic view in aligning our sustainable investing beliefs towards our investment activities. There’s a clear recognition that each of the three factors – ESG – play an important role in driving the long-term value of the fund’s investment portfolio.”
He said the fund “should be an agent for positive change, engaging with the companies to help them maintain or adopt best business practices and sustainable business models.”