Buy-out and Risk Management



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

    Pensions taxation: Will you be ready for 6 April 2016?
    12 November 2015

    ​6 April 2016 is yet another milestone date for the taxation of pensions. It will see a further reduction in the lifetime allowance (from £1.25 million to £1 million), following hot on the heels of earlier reductions in April 2012 and 2014.

    Read full article here

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    Auto-enrolment: three years on
    3 November 2015

    ​October 2015 marked the third anniversary of the formal introduction of the new employer duties. In this note, we review developments over the last year and look forward to what we can expect in the future.

    Read full briefing note here


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    PPF consults on 2016/17 levy
    16 October 2015

    ​On 21 September 2015, the Board of the Pension Protection Fund (PPF) published a consultation document on possible changes to the 2016/17 levy. Only minor changes are proposed and the consultation closes on 22 October 2015.

    Read full briefing note here

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    Pension Scheme Discount Rates – Benchmark your assumption with your peers
    7 October 2015

    ​These are turbulent times for investment returns and pension scheme deficits. In this quarter’s bulletin, we provide focus on end-of-September accounting assumptions for sponsors’ annual disclosures at 30 September 2015. There are also plenty of other considerations for sponsors before the year is out and this bulletin highlights many of these issues.

    Read full bulletin here

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    New regulatory guidance on employer covenant
    2 October 2015

    ​In August 2015, the Pensions Regulator published new guidance entitled “Assessing and monitoring the employer covenant”. In this insight, we consider the key messages of the new guidance and what it means for trustees and sponsoring employers.

    Read full briefing note here

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


    Getting Ready for Your Next Pension Valuation
    26 November 2015
    For trustees, pensions managers, finance directors & their teams
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    Implications of Budget Pensions Changes for Members and Trustees
    4 February 2016
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    Getting Ready for Your Next Pension Valuation
    3 March 2016
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    Getting Ready for Your Next Pension Scheme Valuation
    24 November 2016
    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