The Trustee of the Scheme entered into an agreement with the insurance company Just Retirement Limited ("Just") in 2022 to secure DB Plan members' benefits. The DB Plan will be closed, (known as being 'wound up') and the winding-up process commenced with effect from 31 March 2024.
November 2024 update: DB Plan benefits have been transferred over to Just and members will be provided with welcome packs and individual policies from them. This part of the process is known as moving to 'buy-out'. Just is now responsible for the administration and payment of the DB Plan members' pensions.
The Trustee of the Scheme has been in regular contact with DB Plan employers regarding Just taking over the responsibilty for DB Plan benefits. You can read these communications here.
Deficit Recovery Contributions (DRCs)
The Trustee ceased the collection of the £1/month DRCs at the end of October 2024. The direct debits for these payments have been cancelled and DB Plan employers no longer have any further responsibilty towards the DB Plan.
Cessation Events and Periods of Grace
For many years, employers in the DB Plan have needed to inform the Baptist Pensions Team if they were expecting to experience a 'cessation event' (broadly, when an employer ceases to have active members in the Scheme's DC Plan). These complexities have now fallen away.
After wind-up was triggered in March 2024, the previous cessation event regime fell away. Whilst at that stage employers remained potentially liable should any shortfall arise, DB Plan employers have now been released from this commitment with effect from 31 October 2024.
As a result, DB Plan employers no longer need to tell the Pensions Team about potential cessation events, for example when your last member leaves the Scheme's DC Plan. Similarly, there is no longer any requirement to apply for a 'period of grace', or take other action to manage a cessation event, if your organisation ceases to have any active members in the Scheme's DC Plan.
Amalgamations and conversions to a Charitable Incorporated Organisation (CIO)
As a result of the above, DB Plan employers may convert to a CIO or amalgamate with another church without any need to involve the Pensions Team in the process. However, please inform us once your CIO conversion or amalgamation has completed and advise us of any name changes.
If you change your bank account details and have any direct debits set up with Broadstone, you should inform them of your new account details. Broadstone can be contacted on baptistpensions@broadstone.co.uk.
Interim Members (IM)
Previously DB Plan employers may have enrolled an IM in order to avoid triggering a cessation event, however, this is no longer a requirement. If your organisation had an IM enrolled at the end of October 2024 Broadstone will have marked them as a 'leaver' on 4myStaff and will issue leavers statements accordingly. Monthly pension payments to IMs have now ceased and the direct debits have been cancelled, therefore no further contributions will be taken.