Plumbing Pensions appoints OCIO, increases investment risk
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The £1.2bn Plumbing & Mechanical Services (UK) Industry Pension Scheme has appointed WTW as its outsourced chief investment officer following a competitive tender process advised by Barnett Waddingham. The scheme is also looking to accelerate its journey to buyout by taking more investment risk.
WTW said it will work closely with investment advisers from Aon and the scheme actuary to bring together investment and wider perspectives, saying the model is designed to focus on reliable returns, enable faster decision-making and support the scheme in achieving its buyout objective.
Trustee chair Jon Bridger said: “We were impressed by WTW’s deep understanding of our scheme’s unique needs and their ability to tailor a solution that balances resilience with long-term value creation. Their collaborative and innovative approach gave us confidence that they are the right partner to help us navigate the next phase of our journey.”
Ben Johnson, senior director at WTW, said: “We are excited to partner with the trustee to deliver the consistent, risk-adjusted returns needed to support the scheme’s long-term goals.”
The scheme and employers agreed last year to take slightly more investment risk, with a view to targeting increased returns and shortening the timeframe to buyout. Plumbing Pensions is an unsectionalised multi-employer scheme. The employers, mostly small businesses, have in the past found themselves with often unaffordable section 75 debts, having joined the scheme without sufficient knowledge of the future impact it could have. As at April 2024, the scheme had a £9m deficit, which Bridger said would be recovered by investment returns. In April 2023, the scheme had a £258m deficit on a solvency basis.
