FBD significantly reduces Defined Benefit liability with 90% uptake on ETV scheme

“We found Acuvest to be highly professional and competent in delivering a best-in-class DC scheme in incredibly tight timeframes and presenting the benefits to our employees nationwide. By delivering the right DC solution they helped us reduce DB liabilities and, equally importantly, their ongoing role gives us assurance that the scheme will continue to evolve to meet the needs of our employees.”

Conor Gouldson, Company Secretary at FBD

The Client Challenge

FBD Insurance plc wanted to significantly shrink the size of their DB scheme liabilities whilst maintaining their reputation as a best-in-class employer. With the existing DB scheme closing to future accrual they needed a compelling alternative for people to keeping their deferred pension in the DB scheme. While they had existing DC schemes creating an exceptional DC solution, and also a clear communications plan to explain its benefits, was seen as a critical component to the success or otherwise of the initiative.

Our Solution

In collaboration with our client, Acuvest, using best-in-class design features created and implemented a new Defined Contribution scheme. This included designing the fund options and leading the process for selecting and negotiating ultra-competitive fees with the administrator and fund managers on FBD’s behalf. We also clearly demonstrated how we would provide an oversight going forward to ensure the solution would protect the future interests of all members, and could be communicated in a positive way to employees.

Legal deeds were prepared and approved by both revenue and the pension authority in 8 weeks and the new scheme was up and running within a further 6 weeks. Taking a member-centric approach, the scheme started with five fund options, distinguishable by their objectives and covering the range of most likely member needs. Our solution also included designing and delivering a clear communications plan through a nationwide interactive presentation that demonstrated the best-in-class features of the members’ new DC scheme.

The Results

In an incredibly tight timeframe, Acuvest delivered a tailored and branded DC scheme that was recognised by both employer and employees as representing a strong value proposition.

The quality of the DC scheme and of the communications at launch contributed significantly to a truly exceptional 90% take up of the ETV offer. The success of the initiative in turn had a real impact in freeing up capital to support FBD’s repositioning and growth objectives. With proactive, independent management and strong employer contribution rates, the new scheme also delivers excellent value to employees, enhancing engagement with the company and is now a valuable part of employees’ total reward package.

What the client said:

“We found Acuvest to be highly professional and competent in delivering a best-in-class DC scheme in incredibly tight timeframes and presenting the benefits to our employees nationwide. By delivering the right DC solution they helped us reduce DB liabilities and, equally importantly, their ongoing role gives us assurance that the scheme will continue to evolve to meet the needs of our employees.”

Conor Gouldson, Director and Company Secretary

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