Buy-out and Risk Management

 

 Overview

 

We can help you with:

  • identifying the key risks – schemes are typically exposed to risks such as sponsor risk, investment risk, inflation risk and longevity risk.  Understanding the extent of the risk currently being taken in each of these areas is a fundamental first step to determining an appropriate risk budget.

  • managing investment risk – understanding the impact of the investment strategy on the volatility and future expected funding position of your pension scheme, including the potential use of swaps and other investment products to manage risk.

  • analysing and executing a buy-out or buy-in – our specialist buy-out team has advised and managed dozens of pension schemes through a wide variety of buy-in and buy-out processes since 1999, focussing on meeting our clients’ specific needs in a timely and cost-efficient manner.

  • assessing longevity swaps – we have conducted detailed research into this nascent market and developed a market-leading bespoke longevity tool to help schemes assess their exposure to longevity risk and consider the effective price of entering into a longevity cash flow swap or longevity index hedge.

  • establishing trigger points – allowing a scheme to identify the right time to implement a risk management solution. The success of risk management solutions are affected by the timing of their implementation. We can help identify key events and optimal timings that should trigger the undertaking of risk management solutions. This could be achieved through the use of an online daily valuation tracker tool which monitors the progression of a scheme’s  funding position.

  • covenant advisory service - this is an area  where we can provide specialist services to assist pension scheme trustees in assessing and monitoring the strength of the employer covenant. Click here to learn more about our covenant advice service for trustees.

 

 

 Insights & views

 
    Pension Schemes Bill redefines pensions (again)
    14 July 2014

    The Chancellor’s Budget announcement of greater flexibility over retirement benefits has led to a major reinterpretation of what the word ‘pension’ means in a defined contribution context. Meanwhile, the Department for Work and Pensions
    (DWP) has been working on its own redefinition of pensions in a wider context, in the shape of the Pension Schemes Bill, which was laid before Parliament on 26 June 2014.

     

    View the briefing note

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    Pensions Bulletin March 2014
    10 March 2014

    In the latest issue of our Pensions Bulletin, we focus on journey plans and integrated risk management plans in the light of the Pensions Regulator's draft code of practice on DB funding. The Bulletin also looks at some other recent developments, including the impact of same sex marriage on occupational pension schemes and HMRC’s recent announcement on changes to its VAT policy.



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    Pensions Bulletin September 2013
    9 September 2013

    In our latest Pensions Bulletin, we examine the increased regulatory focus on defined contribution (DC) schemes, with a new code of practice from the Pensions Regulator for trust-based DC schemes, a DWP call for evidence on minimum DC quality standards and a review of scheme charging structures by the Office of Fair Trading.

    The Bulletin also looks at some other recent developments, including a recent European case on the recovery of VAT and the appointment of a new PPF insolvency risk provider.

    In addition, the Pensions Bulletin flags key dates for your diary over the next quarter, including some Punter Southall events.



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    Corporate Bulletin: Quarter 2 2013
    4 July 2013
    In brief:
    • Discount rates will be similar to this time last year although higher expectations of price inflation will increase accounting liabilities by around 5-10% over the year.
    • Pension scheme investments have had a volatile year, although for most schemes overall these will have kept pace with the increase in liabilities. Deficits may have stood still or marginally improved over the year.
    • Companies should seek to engage with trustees regarding the new funding objective at the next triennial valuation. The need for business growth may become a contentious area for discussion.
    • Complex calculation requirements to quantify the accrual of pension benefits for company directors look set to come into force in autumn 2013. Companies should ensure they are ready to meet the new requirements.
    Read more
    Pensions Bulletin - June 2013
    12 June 2013
    In our latest Pensions Bulletin, we ask whether the Pensions Regulator’s annual funding statement and proposed new objective go against the flow of regulation over the last decade by strengthening the position of the employer. The Bulletin also looks at some other recent developments, including the revised Takeover Code, the pensions implications of an independent Scotland and GMP equalisation.
     
    In addition, the Pensions Bulletin flags key dates for your diary over the next quarter, including some Punter Southall events.
     


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    Pensions Bulletin - March 2013
    6 March 2013
    In our latest Pensions Bulletin, we ask whether it is time for more joined-up thinking on pensions: do the various recent initiatives suggest that Government departments are working together to achieve the right balance between reform and continuity in the pensions system? The Bulletin also looks at some other recent developments, including ‘micro pot’ refunds, changes to the disclosure requirements and DC pension charges.
     
    In addition, the Pensions Bulletin flags key dates for your diary over the next quarter, including some Punter Southall events.
     


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    Incentive exercises: new Code of Good Practice
    20 June 2012
    A new code for defined benefit pension schemes, ‘Incentive Exercises for Pensions: A Code of Good Practice’, has been published in response to calls from the Pensions Minister, Steve Webb, to improve the way pensions-related incentive exercises are conducted.


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    Visit the Industry Insights page for news and views on the latest industry developments
 

 Events

 
    Trustee Training - Trustee Knowledge and Understanding (Intensive)
    4 December 2014
    This course addressed the knowledge and understanding requirements
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    Pensions Disclosures in Company Accounts Employer Masterclass
    27 November 2014
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    Preparing for your next valuation
    6 November 2014
    For Trustees, Finance Directors and those responsible for Pensions and Corporate Risk
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    Punter Southall Annual Conference 2014
    2 October 2014
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    Trustee Training - Trustee Knowledge and Understanding (Intensive)
    30 September 2014
    This course addressed the knowledge and understanding requirements
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    Salary Sacrifice: The Great Exchange
    18 September 2014
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    Budget Pension Changes: Breakfast Briefing for Pension Schemes and Corporates
    18 September 2014
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    Salary Sacrifice: the Great Exchange
    16 September 2014
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    Managing Global Employee Benefits: Focus on Asia
    4 September 2014
    Read more
    Visit the Events area for all forthcoming Punter Southall seminars, conferences and events
    Speak to us

    Speak direct to our specialists in this area
    Adam Stanley
    Head of Trustee Services
    Or call us on
    020 3327 5000