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

 
    PPF confirms details of 2016/17 levy
    15 January 2016

    ​On 17 December 2015, the Board of the Pension Protection Fund (PPF) published final details of how the 2016/17 levy will be calculated.

    Read full briefing note here

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    IRM… what does it look like?
    15 January 2016

    ​In December 2015 the Pensions Regulator (TPR) published its long-awaited guidance on what Integrated Risk Management (IRM) may look like and how trustees should go about putting it in place. The guidance effectively expands the material on IRM provided in Code of Practice 3: Funding of defined benefits, which has been effective since July 2014.

    Read full briefing note here

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    Ten key dates for trustee diaries in 2016
    8 January 2016

    ​2015 was one of the busiest years ever for pensions, with the introduction of the new pensions freedoms in April 2015 creating particular challenges for the trustees of both defined benefit and defined contribution schemes. A look ahead at some of the key dates in trustees’ calendars shows that there will certainly be no slowing of the pace in 2016. In addition, there are a few possible developments that we may see in 2016 that could have the potential to blow existing pensions planning completely out of the water.

    Read full news alert here

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    Hot topics for companies in January 2016
    5 January 2016

    ​An increase in the level of corporate bond yields is positive news for pension scheme accounting deficits and company balance sheets. We take a look at market conditions and accounting assumptions at the 31 December 2015 year end in more detail.

    Read full bulletin here 

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    New draft DC Code of Practice
    21 December 2015

    ​On 24 November 2015, the Pensions Regulator (TPR) published its new draft Code of Practice on the governance and administration of trust-based occupational defined contribution (DC) schemes. It is subject to consultation, which closes on 29 January 2016, and the final Code is expected to come into force in July 2016.

    Read full briefing note here

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

 Events

 
    Implications of Budget Pensions Changes
    10 February 2016
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    Getting Ready for Your Next Pension Valuation
    3 March 2016
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    Demystifying Pension Scheme Investment
    17 March 2016
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    Demystifying Pension Scheme Investment
    28 April 2016
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    Demystifying Pension Scheme Investment
    10 May 2016
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    Punter Southall Annual Pensions Conference 2016
    29 September 2016
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    Getting Ready for Your Next Pension Scheme Valuation
    24 November 2016
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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