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

 
    ‘Call for evidence’ on section 75 debts in multi-employer schemes
    28 April 2015

    ​Current employer debt legislation exposes employers in multi-employer defined benefit (DB) schemes to the risk of large debts falling due and can restrict the options available for managing pension risks. This note summarises the current position and a recent call for evidence published by the Department for Work and Pensions (DWP).

    View full briefing note here

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    A new dawn for liability management through member choice
    20 April 2015

    The implications of the changes that came into effect from 6 April 2015 will be wide-ranging for all. In an environment where members are embracing choice, many employers are finding increased benefits to engaging with members as they reach retirement.

    View full briefing note here

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    Corporate Bulletin Quarter 1 2015
    7 April 2015

    ​Market conditions remain challenging for pension schemes and their sponsors. We provide sponsors with a discussion of accounting assumptions at 31 March 2015.

     

    Click here to view bulletin

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    Flexiday is upon us!
    31 March 2015

    ​In the final note in our ‘Countdown to Flexiday’ series before Flexiday itself (6 April 2015), we look back over the developments of the last few weeks and forward to what the new pensions flexibility regime may mean in practice.

     

    View briefing note here

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    The Impact of Deflation on Occupational Pensions
    27 March 2015

    The Consumer Prices Index (CPI) was unchanged in the year to February 2015 (i.e. the 12 month rate was exactly 0.0%), a record low. With further falls in inflation later this year seeming a distinct possibility, we consider the impact of deflation on occupational pension schemes.

    Click here to view briefing note

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

 Events

 
    Cost Effective De-risking - Punter Southall's Unique Approach
    11 June 2015
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    Cost Effective De-risking - Punter Southall's Unique Approach
    17 June 2015
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    Charities and the Pensions Challenge: What Chairs Need to Know
    7 July 2015
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    Cost Effective De-risking - Punter Southall's Unique Approach
    8 July 2015
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    Investing in a 'Conservative' World
    16 July 2015
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    Getting Ready for Your Next Pension Scheme Valuation
    24 September 2015
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    PS Annual Pensions Conference 2015
    1 October 2015
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    Getting Ready for Your Next Pension Scheme Valuation
    26 November 2015
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    Trustee Training - Trustee Knowledge and Understanding (Intensive)
    3 December 2015
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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
    Neil Lalley
    Head of Employer Services
    Or call us on
    020 3327 5000