Broadstone has announced the launch of the Sirius Index to aid trustees and employers in understanding the funding position of a low-dependent state.
According to Broadstone, the Index will monitor how quickly pension plans become self-sufficient or less dependent. Broadstone will offer a fresh and knowledgeable perspective into the discussion on the success or failure of various tactics to achieve the low-reliance position by tracking the movement towards this position throughout its broad book of clients, encompassing all sections of the market.
The BSI develops a number of sample schemes that are using alternative approaches and tracks their development toward self-sufficiency, reporting data on a regular basis.
According to the first BSI findings, between January and October 2022, financing for a scheme with a fully hedged strategy would have decreased to 69 per cent from 80 per cent. Over the same time span, financing would have increased with half-hedged schemes to 91 per cent.
Broadstone head of consulting & actuarial Nigel Jones says: “We are pleased to launch the Broadstone Sirius Index (BSI) which brings a unique perspective on the benefits of hedging or otherwise in the journey schemes are on to reduce risk and reach low dependency. Low dependency is an important goal that allows trustees and employers to push on towards buy-out and benefit security for all their members. Our evidence base is already highlighting the different experiences of varying strategies and the decisions trustees make at this point will be crucial to their path over the next 5 years and beyond.”