ZEDRA announces streamlined Escrow Solution for Pension Schemes of all sizes

09 April 2024

ZEDRA has brought together our expertise in Pensions and the provision of Escrow services to provide a solution for pension schemes of all sizes.

The introduction of the solution comes following the reduction of the tax rate on surplus, from 35% to 25%. Alan Greenlees, Client Director at ZEDRA commented, “The reduction will be welcomed by many schemes and sponsors who find themselves in a financially strong position, with the prospect of being overfunded and having a surplus at the end of their journey. However, schemes should be proactive in planning ahead for this possibility. Ready-made solutions like escrow can mitigate the risk of having ‘trapped surplus’ and avoid this tax altogether.”

Leveraging its deep expertise in pensions and escrow services, the company has announced an Escrow solution designed specifically for pension schemes targeting a bulk purchase annuity and with concerns about possible overfunding. The solution promises to address the gap for smaller schemes seeking escrow services, offering a streamlined, cost-effective approach that breaks away the traditional complexities and high costs associated with escrow arrangements.

“Risk Transfer has been the number one topic in pensions for the last 12 months” said Alan. “It is very much a sellers’ market, and smaller schemes are finding it increasingly difficult to secure favourable deals. We are excited to offer a solution that not only eases the funding process for smaller schemes, but also provides substantial cost savings and improved efficiencies. It’s a ‘Win-Win’ solution for schemes and sponsors on the path to buy-out.”

With no minimum scheme requirement, ZEDRA’s solution opens doors for previously disadvantaged, smaller pension schemes. Their standardised terms are set to significantly lower costs, making the process efficient and affordable and facilitating a smoother entry into the buy-in market for pension schemes.

The solution is ideal for those looking to mitigate the risk of trapped surplus, while on the path to securing a bulk purchase annuity with an insurer.

ZEDRA Director, Sue Wakefield commented, “I’m delighted to expand our Escrow services to cater to the Pensions industry. Conversations around trapped surplus and endgame are incredibly topical at present, with traditional solutions often unavailable for smaller schemes. Escrow can bridge that gap and our innovative approach means it is a viable solution regardless of size. I look forward to assisting sponsors and trustees in search of an Escrow provider that combines deep expertise with the assurance of being authorised and regulated by the Financial Conduct Authority.”

ZEDRA’s Escrow solution for pension schemes is a testament to the company’s innovative spirit and commitment to providing comprehensive, easy-to-implement solutions that cater to the evolving needs of the pensions marketplace.

For more information on ZEDRA’s Escrow solution for pension schemes, please get in touch with Alan Greenlees or Sue Wakefield.



Notes to Editors

For more information, please contact:


Kate Boyle

07930 442 883