The Rexam Pension Plan (the ‘Plan’) recently published its ‘Report & Financial Statements for the year 1 April 2024 to 31 March 2025’. The document, dated August 22, 2025, outlines significant strategic decisions, including the commencement of the Plan’s wind-up process and a shift in its accounting basis.
Plan Wind-Up Commences
The Trustee initiated the winding-up of the Plan on August 21, 2025, following the completion of certain data cleanse activities. The full buy-out of the Plan is anticipated to be completed during the fiscal year ending March 31, 2027. This action follows the signing of a Bulk Purchase Annuity (BPA) with Rothesay on November 21, 2023, which provides insurance for members’ liabilities. The Plan was closed to new members on April 5, 2011, and to future accrual for remaining active members on April 5, 2024 (page 3, 5).
Shift to Non-Going Concern Accounting Basis
Effective August 21, 2025, the Plan is no longer considered a going concern. Consequently, the financial statements for the year ended March 31, 2025, have been prepared on a non-going concern basis. No adjustments were required to the financial statements as a result of this change in accounting basis (page 8, 23).
Residual Assets Managed by Schroders
Following the purchase of the BPA, the residual assets of the Plan are managed by Schroders Pension Management Limited (SPML). These assets are primarily held in a liquidity fund and an index-linked bond fund. For the fiscal year ended March 31, 2025, these funds, held with Schroders, returned 4.58% overall. Specifically, the Schroders liquidity fund returned 4.90%, and the Schroders gilt fund returned -7.66% (page 3, 15).
AVC Investment Strategy Review Confirms No Changes
A review of the Additional Voluntary Contributions (AVC) investment strategy, including the default Lifestyle strategy, was undertaken in Q1 2023 and discussed at the Trustee meeting on June 6, 2023. The review concluded that the funds performed in line with their objectives, and the default lifestyle strategy remained appropriate for the AVC population. No changes were required to the investment strategy (page 9, 30).
Manager Appointments and Performance
Schroders Pension Management Limited (SPML) manages the residual assets of the Plan. For the fiscal year ended March 31, 2025, the Schroders liquidity fund returned 4.90%, and the Schroders gilt fund returned -7.66% (page 15). Aviva is the provider for the Plan’s AVC arrangements, offering a range of self-select funds and a lifestyle strategy. The Trustee monitors Aviva’s performance against Service Level Agreements (SLAs), with an overall performance of 97% during the reporting period, exceeding the 95% target (page 9, 10).
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