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

 
    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

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    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

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    Scheme funding: the regulator’s eighth analysis
    5 June 2015

    ​In May 2015, the Pensions Regulator (TPR) published its eighth annual analysis of valuations and recovery plans, covering valuations with an effective date falling in the year to 21 September 2013. The analysis covers scheme demographics, assumptions used and details on recovery plans.

    Read full briefing note here

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    Out with the old, in with the new…
    3 June 2015

    ​Before 2010, Pensions Ministers seemed to change faster than the latest fashions: each Minister barely had time to master his or her increasingly complex portfolio before the next Minister was knocking at the door. All that changed in 2010 where the unusual circumstances of a Coalition Government brought us the novel prospect of a Pensions Minister who stayed in post for five years and actually knew quite a lot about pensions when he took up the job.

    Read full bulletin here

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    The Pensions Regulator issues its funding statement for the ‘unlucky cohort'
    26 May 2015

    ​The Pensions Regulator (TPR) has issued its annual defined benefit funding statement aimed at trustees and employers undertaking valuations with effective dates between 22 September 2014 and 21 September 2015. This group of schemes can be viewed as an unlucky cohort, in that their triennial valuation dates have tended to fall in particularly difficult economic circumstances in 2009, 2012 and now in 2015. (They were also the cohort who first had to get to grips with the new scheme funding regime in 2006.)

    View full news alert here

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

 Events

 
    Charities and the Pensions Challenge: What Chairs Need to Know
    7 July 2015
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    Cost Effective De-risking
    8 July 2015
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    Investment Masterclass: Managing Volatility and Balancing Risk
    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