Slaughter and May is advising aberdeen on an agreement with the trustee of the abrdn (SLSPS) Pension Scheme (the “Trustee” and the “Scheme”) to utilise part of the Scheme’s surplus to fund the cost of providing defined contribution benefits. This is subject to certain conditions, including the satisfaction of financial strength tests designed to preserve the security of DB pensions and DB members being able to receive a share of surplus via enhancements to their pensions. The Trustee will have discretion over how to apply the aggregate allowable enhancement over the relevant population of plan members. There will also be an annual review of other options, including a de-risking transaction.
Slaughter and May worked closely with aberdeen’s in-house legal team, pensions and insurance solutions team and tax team and the Trustee’s legal advisers, Shepherd & Wedderburn LLP, and actuarial advisers, Hymans Robertson LLP.
