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Published on: December 21, 2021

Pension liability removed, funding headroom

CEPS has recently announced that the Trustees of its legacy pension scheme have entered into a buy-in contract with Aviva. While providing security for existing scheme members, this contract also removes investment and funding risk for CEPS. It is possible that there will be a surplus to be repaid to CEPS arising from the excess of scheme assets over scheme liabilities, although it is too early to determine how much this could be. In September, CEPS delivered its first ‘clean’ set of results (for HY21), which demonstrated that it is now a transformed entity following restructuring over the past three years. The transfer of the pension scheme, and hence removal of the pension liability, represents one of the final strategic initiatives.

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