By design, Stoneport brings different employers’ schemes together to form one larger stronger scheme because in turn, not only does this generate the savings for employers, it radically improves the security of members’ benefits. In addition, the risks to employers of running their schemes on a standalone basis – which are considerable for smaller arrangements – are much reduced by the risk pooling this achieves.
The transformative improvement in members’ long- term benefit is best illustrated by considering the anticipated change in the risk-based levy payable to the Pension Protection Fund for a scheme joining Stoneport, which is expected to exceed 90%.
Unlike for a standalone scheme, where the ultimate cost of paying the benefits may hinge on whether an individual member with a large pension lives to 100, or dies aged 70, Stoneport pools these risks, removing what can be a very material risk for smaller schemes, making employers’ funding outcomes more certain.
Through economies of scale, achieved by bringing employers together to run as one larger and stronger scheme, Stoneport deliver much more, for a lot less.