Pension risk management is top of most trustees’ agenda and increasingly it’s also top of the corporate agenda.
Pension scheme trustees are expected to identify and seek to mitigate against risks facing their scheme. The risk posed by the scheme to the employer also needs to be carefully considered. Deficits in many schemes have risen despite hefty extra contributions by sponsoring employers. And market conditions are still unpredictable, creating balance sheet volatility that affects business strategy and risks eroding corporate value.
What do we do?
Pension risk management by the own scheme’s risk and the corporate risk are not mutually exclusive. Our highly skilled team works with both employers and trustees to identify and implement solutions which can help remove risk for the employer without prejudicing (and in many cases actually enhancing) the security of members’ benefits.
We specialise in pension risk management services including advising on:
- pension increase exchange, enhanced transfer value and other member option exercises;
- the implementation of contingent assets such as guarantees, security and the use of pension surety bonds (we have played a leading role working with the surety industry to develop and implement these);
- alternative funding structures including asset-backed funding vehicles and reservoir trusts;
- planning for and implementing buy-ins and buy-outs; and
- consolidation of legacy pension arrangements within corporate groups (for example, scheme mergers).
Who do we help?
We help businesses of all sizes in regard to pension risk management.