This transaction was part of an innovative package that included:
The buy-out elements were novel and complex. The terms were agreed before the offers
were made to pensioners and had to cover a range of possible outcomes.
Paul Stannard, Travers Smith’s Head of Pensions, said:
“This was an ambitious project and the trustee board is to be congratulated on achieving these outcomes for the members of the TRW Pension Scheme. We are delighted to have helped the trustee offer these new options to members and improve the security of members’ benefits.”
TRW Automotive ranks among the world's leading automotive suppliers. Headquartered in
Livonia, Michigan, USA, the company, through its subsidiaries, operates in 24 countries and employs approximately 65,000 people worldwide.
The TRW Pension Scheme provides pension benefits to over 46,000 beneficiaries with assets of £3.5 billion. The scheme is sponsored by a UK subsidiary and its trustee is TRW Pensions Trust Limited. The Scheme was established in 1928 by Lucas, which became part of Lucas Varity and then TRW Automotive. It closed to future accrual in 2009.
The Travers Smith team was led by Paul Stannard, head of pensions. Other members of the team included finance partner, Peter Hughes, Dan Naylor (associate, pensions), Sarah Boon (consultant, pensions) and Joe Wren (associate, finance).