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

 
    Pension scheme levies 2016/17
    21 June 2016

    ​Pension schemes are subject to a number of different levies. This briefing note collates previously published information to help schemes understand how much they can expect to pay in 2016/17.

    Read full briefing note here

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    Scheme funding: the regulator’s ninth analysis
    21 June 2016

    ​In June 2016, the Pensions Regulator (TPR) published its ninth annual analysis of valuations and recovery plans, covering valuations with an effective date falling in the year to 21 September 2014. The analysis covers scheme demographics, assumptions used and details of recovery plans.

    Read full briefing note here

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    Does British Steel consultation open up Pandora’s box?
    8 June 2016

    ​On 26 May 2016, the Department for Work and Pensions (DWP) issued a consultation setting out a range of radical options that could potentially help the British Steel Pension Scheme (BSPS). Whilst the consultation is apparently only focused on the BSPS, it opens up the question of whether similar options could be made available to any pension scheme with a weak employer. Some of the options proposed could also have implications for PPF levy payers.

    Read full briefing note here

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    Revised draft DC Code of Practice and Guidance
    25 May 2016

    ​On 9 May 2016, the Pensions Regulator’s (TPR’s) revised defined contribution (DC) Code of Practice was laid before Parliament, where it will remain for 40 days before coming into force in July. At this point, TPR will publish final versions of its ‘how to’ guides which support the new Code, together with its revised compliance and enforcement policy.

    Read full briefing note here

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    Queen’s Speech: Pensions Bill announced
    18 May 2016

    ​As had been expected, today (18 May 2016) saw the announcement of a Pensions Bill following the Queen’s Speech. Slightly disappointingly, Her Majesty did not actually mention it in the speech itself, although she did refer to the Lifetime Savings Bill which will provide the legislative framework for the Lifetime ISA.

    Read full news alert here

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

 Events

 
    Trustee Knowledge & Understanding (TKU) Course
    6 July 2016
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    Maturing Gracefully: End Game Planning for Pension Schemes
    12 July 2016
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    Punter Southall Annual Pensions Conference 2016
    29 September 2016
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    Trustee Knowledge & Understanding (TKU) Course **FULLY BOOKED**
    6 October 2016
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    Getting Ready for Your Next Pension Scheme Valuation
    24 November 2016
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    Trustee Knowledge & Understanding (TKU) Course
    8 February 2017
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    Trustee Knowledge & Understanding (TKU) Course
    14 June 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