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

 
    Balancing the past and the future
    3 September 2015

    ​Two publications this summer highlight the challenges that trustees of defined benefit (DB) schemes face, in terms of both looking ahead to the future and managing the legacy of the past.

    Read full bulletin here​​​​​

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    Getting to grips with DC governance
    11 August 2015

    Since 6 April 2015, trustees of defined contribution (DC) occupational pension schemes have had to get to grips with the new governance standards and charge cap measures. This note looks at what DC trustees need to do to comply, and considers what else is in the pipeline during the rest of 2015.

    Read full briefing note here

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    Corporate Bulletin Quarter 2 Update 2015
    8 July 2015

    Summer is finally here, and, while the heat wave has been increasing temperatures across the country, we have seen bond yields increasing over the quarter too.

    Read more here

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    Liability driven investment
    25 June 2015

    Liability Driven Investment (LDI) solutions have been implemented on large volumes of pension scheme liabilities but many smaller schemes have not yet put in place this kind of risk management.

    Read full bulletin here

    Read more
    Pension scheme levies 2015/16
    8 June 2015

    ​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 2015/16.

    Read full briefing note here

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

 Events

 
    Getting Ready for Your Next Pension Scheme Valuation
    24 September 2015
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    Annual Pensions Conference 2015
    1 October 2015
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    Getting Ready for Your Next Pension Scheme Valuation
    26 November 2015
    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
    Neil Lalley
    Head of Employer Services
    Or call us on
    020 3327 5000