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

 
    Scheme funding: the Regulator’s tenth analysis
    3 July 2017

    In June 2017, the Pensions Regulator (TPR) published its tenth annual analysis of valuations and recovery plans, covering valuations with an effective date between 22 September 2014 and 21 September 2015. The analysis covers scheme demographics, assumptions used and details of recovery plans.

    Read full briefing note here

    Read more
    Pension scheme levies 2017/18
    3 July 2017

    ​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 2017/18.

    Read full briefing note here

    Read more
    Queen’s Speech: 27 proposed Bills but no Pensions Bill
    21 June 2017

    ​Today (21 June 2017), the Queen announced the Government’s legislative programme for the next two years, rather than the usual one, at the State Opening of Parliament. As expected, Brexit bills dominate the Government’s agenda, with a host of proposed new laws designed to prepare the UK for a ‘smooth and orderly’ departure from the European Union. 

    Read full news alert here

    Read more
    IRM – Are you maximising the chance of achieving your pension scheme’s objectives?
    14 June 2017

    Integrated risk management (IRM) was a key theme of the annual funding statement published by the Pensions Regulator (TPR) in May 2017. An effective IRM approach can inform trustee and sponsor decisions on a scheme’s long-term strategy.

    Read full briefing note here

    Read more
    What do the 2017 election manifestos say about pensions?
    5 June 2017

    With the snap general election on 8 June 2017 fast approaching, we take a short guided tour of the recently published manifestos to see what pledges relating to pensions have been made.

    Read full bulletin here

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

 Events

 
    Trustee Knowledge & Understanding (TKU) Course
    7 September 2017
    Read more
    Investment Masterclass: Alternative Ways of Managing Risk
    21 September 2017
    Read more
    Annual Pensions Conference 2017
    28 September 2017
    Read more
    Investment Event: Practical Advice for DB Pension Schemes
    5 October 2017
    Read more
    New Investment Trustee Training Course (Half-day)
    11 October 2017
    Read more
    Trustee Knowledge & Understanding (TKU) Course
    8 November 2017
    Read more
    Pension Scheme Valuations: "The Big Opportunity” Valuation Masterclass
    9 November 2017
    Read more
    New Trustee Training Course: Funding, Covenant and Integrated Risk Management (Half-Day)
    21 November 2017
    Read more
    Getting Ready for your next Pension Scheme Valuation
    23 November 2017
    Read more
    Investment Event: Practical Advice for DB Pension Schemes
    13 December 2017
    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
    Craig Wootton
    Principal
    Or call us on
    020 3327 5000