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

 
    Spring Budget 2017: no news is good news?
    8 March 2017

    As was the case for last year’s Autumn Statement, there were relatively few significant announcements affecting pensions in today’s Spring Budget. It remains to be seen whether there will be any fireworks at the forthcoming Autumn Budget.

    Read full alert here

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    No Need to Panic on DB Schemes?
    21 February 2017

    On 20 February 2017, the Department for Work and Pensions (DWP) published its Green Paper entitled ‘Security and Sustainability in Defined Benefit Pension Schemes’. As befits its status as a Green Paper, this is a paper that is long on questions and short on firm recommendations about the future of defined benefit (DB) pensions. The DWP’s aim is to ‘encourage an informed debate on what if anything Government may need to do’.

    Read full briefing note here

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    Pension Scheme Investment: Tackling the Current Market
    30 January 2017
    Any uncertainties about the implications of Mr Trump’s protectionist trade policies were soon outweighed by his plans to cut taxes, boost infrastructure spending and reduce regulations, which were seen as improving domestic growth prospects. This investment update reviews market conditions, and explains our asset class views and assesses what a rate rise would mean to liability driven investment strategies. 
     

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    Will GMPs finally be equalised?
    25 January 2017

    On 28 November 2016, the Department for Work and Pensions (DWP) started consulting on a possible new methodology for equalising guaranteed minimum pensions (GMPs). In this note we consider the possible implications.

    Read full Briefing Note here

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    PPF confirms details of the 2017/18 levy
    17 January 2017

    ​On 15 December 2016, the Board of the Pension Protection Fund (PPF) published the Determination setting out how the 2017/18 levy will be calculated. This confirms that the majority of the proposals in the September consultation will be adopted.

    Read full briefing note here

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

 Events

 
    Investment Masterclass: Making Value Based Investment Decisions
    30 March 2017
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    Investment Masterclass: Making Value Based Investment Decisions
    9 May 2017
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    Getting Ready for your next Pension Scheme Valuation
    18 May 2017
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    Trustee Knowledge & Understanding (TKU) Course
    14 June 2017
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    Investment Event: Practical Advice for DB Pension Schemes
    22 June 2017
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    Trustee Knowledge & Understanding (TKU) Course
    7 September 2017
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    Investment Event: Practical Advice for DB Pension Schemes
    12 September 2017
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    Annual Pensions Conference 2017
    28 September 2017
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    Investment Event: Practical Advice for DB Pension Schemes
    5 October 2017
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    Trustee Knowledge & Understanding (TKU) Course
    8 November 2017
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    Getting Ready for your next Pension Scheme Valuation
    23 November 2017
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    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