News

Issue 5 of the Coats UK Pension Scheme newsletter – The Link – is now available. In this issue: Scheme Report and Accounts, Pensioners Payments, Protecting Your Pension and much more. An Annual Funding Statement, showing the funding position of the Scheme as at 31 March 2022, is also available.

You can view these documents online in the members-only section of this website (you will need the secure area password): click here.

The link to the Annual Funding Statement is in the Factsheets area of this section.

The Trustee of the Coats UK Pension Scheme is committed to ensuring the long-term security of the Scheme. Whilst the Scheme is well funded and has the continued financial support of Coats, the Trustee and the Company have together been investigating ways to reduce the remaining risks associated with the Scheme.

Following an extensive due diligence process over the past year and on receipt of advice from its specialist advisers, the Trustee, with the support of the Company, has purchased a bulk annuity insurance policy with Aviva to be held as an investment of the Scheme. This policy (also called a “buy-in”) provides income to the Scheme, covering a significant proportion of the Scheme’s pensions already in payment.

This decision by the Trustee does not change members’ pension entitlement (or the value of the benefits that would become payable on death). Entitlements under the Scheme remain as they were before. Members who are receiving a pension already will carry on receiving the same payments in the same way and on the same date.

The Trustee has worked closely with the Company throughout this process and the Company is fully supportive of this decision. There is no change to the relationship between the Company and the Scheme.

A letter is being sent to all CUKPS members giving more information about the insurance policy and Aviva. We ask all our members to look out for this letter. No further action is required.

Pensions schemes have been in the news a lot recently, and we understand that some members may be concerned by what they have read. Please be assured that despite the well publicised market volatility, CUKPS has not been forced to sell assets and its risk management strategies continue to work as intended. Pensions from CUKPS are therefore not affected (and, in fact, the Scheme’s funding position is at the highest level ever).

The Trustee has been working closely with its advisers to review and assess the Scheme’s investments and strategy. The Trustee Board is comfortable that the investment strategy continues to provide protection to the Scheme in these challenging times.

We are pleased to advise that the Summary Funding Statement following the actuarial valuation as 31 March 2021 is now available.

Members of the Scheme can view this communication online in the members-only section (you will need the secure area password): click here

The Funding Statement is located in the Factsheets section towards the bottom of the screen

New transfer out pension legislation was introduced on 30 November 2021.  As with a number of schemes, the Trustees made the decision to implement a temporary hold (called a moratorium) on all transfer requests received on or after this date. The moratorium is in place for at least 6 weeks and means that we will be unable to process any transfer requests in this time. This will allow the Scheme time to update our communications, processes and procedures and ensure the Trustees are compliant with the changes.  Should you wish to request a transfer, please contact us after mid-January 2022.  Please also note that most members are entitled to one transfer value quotation free of charge per 12 month period. Please click on link below for more information about the new legislation.

https://www.thepensionsregulator.gov.uk/en/pension-scams/dealing-with-transfer-requests#72a072316d1246acaffdb536980e1322