Scapa Group appoints Mercer to de-risk defined benefit pensions

The trustee of the Scapa Group’s pension schemes has appointed Mercer to provide investment services including de-risking for its two defined benefit (DB) schemes.

The global adhesive tape manufacturer’s schemes have a combined fund value of around £80 million.

Before undertaking a complex investment and liability hedging review, Scapa’s trustee evaluated the overall governance structure and recognised the schemes could benefit from delegating the execution of the investment plan.

Scapa has worked with Mercer to formulate a de-risking strategy, agree objectives and parameters, and create a framework.

Sheila Hill, pensions manager at Scala Group, said: “The team from Mercer gave us the confidence to move forward on an implemented basis.

“In particular, the de-risking website is extremely informative and allows us to keep track of our schemes’ funds on a regular basis.”

Dan Melley, UK leader for dynamic de-risking solutions at Mercer, said: “Going down an implemented consulting, or fiduciary management route, does involve delegation, but not abdication.

“Therefore, trustees need to be kept up-to-date, and communication flow is critical.”

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