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 pension scheme’s investment strategy on the company’s balance sheet and the cash cost, including the potential use of swaps and other investment products to manage risk and discussing the company’s view on the investment strategy with the trustees.

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

  • analysing and implementing liability reduction exercises – we have long experience of conducting enhanced transfer value exercises, exchange of pension increase exercises and early retirement exercises to generate optimum levels of liability and risk reduction.

  • analysing and executing a buy-out or buy-in – our specialist buy-out team has advised sponsors 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.

 

 Insights & views

 
    Are you meeting your record-keeping duties
    9 January 2017

    On 30 November 2016, the Pensions Regulator (TPR) published various papers relating to record-keeping. TPR has said that many schemes are not meeting its record-keeping expectations and has confirmed that it will require trustees to report on their record-keeping in the scheme return.

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    January 2017 and a Happy New Year to all
    6 January 2017

    It’s been a rollercoaster year, but we reached the end. Bond yields slid downwards over the year and, like many of us, were at their lowest ebb at the end of the summer holidays. Yields have since climbed, but took a dip at the end of the year as festivities kicked in. Whether we’ve emerged unscathed by political events is yet to be determined and we will have to wait and see what 2017 will bring. 

    Read full bulletin here

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    Ten key dates for 2017
    5 January 2017
    2016 was another eventful year for pensions with 6 April 2016 seeing the introduction of the new state pension and the final demise of contracting out. However, the major reforms to pensions taxation that had been anticipated failed to materialise in the 2016 Budget.
     
    2017 looks set to be another busy year for pensions, with  a number of key dates for the diary ahead of us.

    Read full news alert here

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    Will CPI change in 2017?
    13 December 2016

    ​On 10 November 2016, it was announced that, from March 2017, CPIH would become the Office for National Statistics’ preferred measure of inflation. In this note we consider the potential impact on occupational pension schemes and other recent developments on consumer price indices.

    Read full briefing note here

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    The Times They Are a-Changin’
    5 December 2016

    Whilst it is probably fair to say that Bob Dylan’s 1964 folk classic ‘The Times They Are a-Changin’’ was not focused on defined benefit (DB) pension schemes (which for some reason are rarely an inspiration for songwriters), the lyrics penned by this year’s winner of the Nobel Prize for Literature could be used to describe the pensions landscape as we near the end of 2016.

    Read full pensions bulletin here

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

 Events

 
    Pension Scheme Valuations in Volatile Times
    26 January 2017
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    Trustee Knowledge & Understanding (TKU) Course
    8 February 2017
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    LGPS Training for Admission Bodies - New Course
    23 February 2017
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    Pensions and Investments in Uncertain Times
    9 March 2017
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    Pension Scheme Valuations in Volatile Times
    16 March 2017
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    Pension Scheme Valuations in Volatile Times
    18 May 2017
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    Trustee Knowledge & Understanding (TKU) Course
    14 June 2017
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    Investment Masterclass: Practical Advice for DB Pension Schemes
    22 June 2017
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    Trustee Knowledge & Understanding (TKU) Course
    7 September 2017
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    Trustee Knowledge & Understanding (TKU) Course
    8 November 2017
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    Visit the Events area for all forthcoming Punter Southall seminars, conferences and events
    Speak to us

    Speak direct to our specialists in this area
    Craig Wootton
    Principal
    Or call us on
    020 3327 5000