Chair’s Statutory Governance Statement: 2026/27 Performance Cycle

Scheme Name: Pressure Coolers Ltd Retirement & Death Benefit Scheme
Scheme Number: 10420B
Pension Scheme Registry (PSR) Number: 10056473
Employer Reference (ERN): E231810593
Reporting Period: 6 April 2025 to 5 April 2026

Section 1: Introduction and Chairman’s Preamble

As the sole Director and owner of Pressure Coolers Ltd, which acts as the corporate trustee for the Scheme, I am pleased to present the annual Chair’s Governance Statement. This statement has been drafted to satisfy the strict regulatory requirements set out by the Occupational Pension Schemes (Scheme Administration) Regulations 1996 and subsequent amendment monitored by The Pensions Regulator (TPR).

The primary focus of this statement is to provide a transparent overview of how the Scheme is governed, how costs are managed, and how the underlying assets perform. The Scheme is a highly stable, historic arrangement that holds approximately £2 million in total assets, fully concentrated inside a legacy, closed Aegon Traditional With-Profits (TWP) investment portfolio.

As the sole steward of this fund, my priority is ensuring that our long-standing membership cohort is protected from unnecessary market volatility while maximizing the utility of the powerful, structural income guarantees embedded within our unique insurance policy framework.

Section 2: Value for Members (VFM) Assessment Statement

1. Core Overview and Conclusion

The Corporate Trustee has conducted the comprehensive annual statutory Value for Members (VFM) assessment for the Scheme. Following an evaluation of the fund’s underlying cost metrics, smoothed net performance curves, and structural retirement-phase contract protections, the Corporate Trustee has formally determined that the Scheme continues to offer Good Value for its members. Consequently, the current investment architecture will be maintained, and this position will be re-reviewed in the 2027/28 statutory reporting cycle.

2. Costs and Charges Assessment

The Scheme operates under a highly unique, member-favourable cost design that insulates employees from direct financial overheads:

• Sponsoring Employer Contribution: Pressure Coolers Ltd completely absorbs 100% of the active operational, legal, and regulatory administration costs. No fees are ever levied against individual member accounts by the employer.
• Provider Fee Transparency: Aegon levies zero explicit, visible administration fees or active platform deductions directly against member accounts.
• Implicit Cost Structures: While Aegon manages operational fund expenses internally within the wider with-profits pool before declaring annual bonus rates, the absolute absence of ongoing visible monthly platform deductions ensures that members benefit from an insulated cost structure that compares favourably to modern retail market alternatives.

3. Statutory Comparison Against External Pension Schemes

To satisfy the requirements of The Pensions Regulator, the Scheme’s implicit asset profile and fee structures have been benchmarked against three external pension arrangements, including two institutional Master Trusts holding over £100 million in assets under management (AUM).

The following table is best viewed on a tablet/laptop/desktop device.

• Analysis of Fees: Modern commercial master trusts like NEST and The People’s Pension levy explicit, ongoing annual management fees (0.3% to 0.5%) alongside initial contribution deductions (1.8% for NEST). The Scheme remains highly competitive, as members suffer zero visible platform deductions, zero deposit costs, and zero admin penalties.
• Analysis of Capital Protection and Guarantees: Standard marketplace default strategies expose members to raw, un-smoothed market corrections. Our Aegon Traditional With-Profits fund utilizes a dedicated smoothing mechanism to absorb major equity and bond volatility. Crucially, modern master trusts do not offer Guaranteed Annuity Rates (GARs). Transferring assets out of the Aegon TWP scheme would result in the permanent forfeiture of legacy lifetime annuity rates (yielding up to 10% for fixed pensions).

Section 3: Investment Performance Summary

The underlying investment platform of the Aegon TWP fund maintains a conservative asset allocation designed to protect capital over multi-decade horizons. As of the latest performance reporting data, the portfolio holds 31.1% in Gilts, 53.9% in Other Fixed Interest bonds (totaling 85.0% in fixed income), 7.5% in UK Equity, 5.0% in Overseas Equity, and 2.5% in direct Property.

While the fund’s 10-year annualised net return sits at 2.2% due to the historic bond market corrections observed across the wider financial industry in calendar year 2022 (-13.7%), the fund continues to successfully insulate retiring members via active terminal bonus scales alongside a steady regular reversionary pension bonus rate of 0.25% for the current cycle. These structures ensure that capital values are systematically elevated at the exact point of maturity or death claims.

Section 4: Scheme Administration and Governance

The Scheme systematically monitors and satisfies TPR’s core qualitative governance metrics on a clear PASS basis:

1. Core Financial Transactions: Member and employer financial transaction paths are securely maintained, with funds routed to Aegon cleanly and without processing delay.
2. Record Keeping: Member demographic records, histories, and data values are managed accurately via Aegon’s corporate accounting systems.
3. Governance Oversight: As the sole corporate director, I actively review annual statutory updates, product sheets, and structural positions to protect member alignment.
4. Conflicts of Interest: No conflicts of interest exist. Pressure Coolers Ltd and its directors receive zero commissions, financial considerations, or rebates from Aegon.

Section 5: Signature and Sign-off Block
This statement was formally approved and adopted by the Corporate Trustee on 13 May 2026.

Signed:
Matthew Richard Mitchison
Sole Director of Pressure Coolers Ltd
Acting as Sole Trustee for the Pressure Coolers Ltd Retirement & Death Benefit Scheme
Date of Sign-off: 13 May 2026