Paragon Pension Plan

Paragon Pension Plan

The Paragon Pension Plan is the defined-benefit scheme sponsored by Paragon Banking Group PLC, a publicly traded UK specialist bank headquartered in Solihull. The plan’s investment principles were formalised in a December 2021 Statement of Investment Principles, aligning the scheme with the Pensions Act 1995 and the Occupational Pension Scheme (Investment) Regulations 2005. The assets are held in the United Kingdom, serving the retirement liabilities of employees at a lender known for mortgages for landlords and asset-backed business loans. Asset allocation details are not publicly disclosed by the trustee, but the plan’s design as a UK corporate defined-benefit scheme suggests a liability-driven investment framework typical of its peer set, likely spanning gilts, corporate credit, real estate, and alternatives. The sponsoring employer operates across two core lending verticals: buy-to-let mortgage finance for the UK private rented sector, and a range of asset-backed commercial loan products for SMEs. The pension plan sits adjacent to a bank whose funding is anchored by retail savings deposits, complemented by wholesale funding — a capital structure that directly shapes the risk appetite the trustee must evaluate. The trustee board is the operational nerve center. Alan Keith Fletcher has served as a director of Paragon Pension Plan Trustees Limited since 2011, providing continuity. In 2024, the board added Richard Dominic Shelton in March and Julie Susan Pearson in September, deepening the governance function. Chief Executive Nigel Terrington links the plan to the group’s overall strategic direction. The plan’s scale remains undisclosed, and no team headcount is available, but the trustee structure points to a small, fiduciary-focused governance model rather than an internal investment office with dedicated origination staff. The plan’s primary structural differentiator is its posture as a pure captive pension vehicle inside a specialist bank. It is not a multi-employer scheme, an insured buyout candidate, or a platform for third-party capital. The trustee’s sole mandate is funding defined-benefit obligations, and its governance is tightly integrated with the sponsoring employer’s leadership. This removes any marketing or distribution incentive from the investment function — a structural constraint that distinguishes it from asset managers and family offices alike.