The GKN Group Pension Scheme (No.4) recently published its ‘Report and Financial Statements for the Year Ended 5 April 2025’. The document indicates that the Scheme has commenced winding up and has transferred its Defined Contribution (DC) Section assets to alternative pension arrangements.
Scheme Wind-Up and DC Asset Transfer
The Scheme formally commenced winding up on June 18, 2025. As a result, all remaining DC benefits were transferred to alternative pension arrangements. Specifically, DC Section benefits for members with both defined benefit and defined contribution benefits were transferred to the Just Section of the Mercer Master Trust on September 5, 2025. The remaining DC Section benefits were then transferred to the GKN Group Pension Scheme (No.1) on September 26, 2025. The Scheme no longer holds any assets for members and is expected to complete its wind-up in 2026 (page 57).
Defined Benefit Section Fully Insured and Heading for Buy-out
All Defined Benefit (DB) investment assets were transferred to an annuity policy in March 2023. During 2022, the Trustee purchased a bulk annuity policy with Just Retirement, and in April 2023, a further insurance policy was purchased with Just Retirement, resulting in the DB Scheme being fully insured. These policies remain assets of the Trustee and were valued at £397,200k as of April 5, 2025 (page 8, 26). Furthermore the Scheme is proceeding for Buy-out by December 2025. (page 2).
No Changes to Defined Contribution Default Arrangements
No changes were made to the DC default arrangements during the fiscal year ended April 5, 2025. The next formal triennial review of the investment arrangements was scheduled to begin in September 2025 but was not required due to the transfer of all DC Section members and benefits to alternative DC pension schemes by September 26, 2025 (page 43, 62).
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