Hymans Robertson has launched a new service designed to help defined benefit pension schemes assess whether running on is a viable option as they approach endgame.
The service, called Horizon, is intended to support trustees and sponsors navigating increasingly complex decisions around whether schemes should continue operating rather than transferring liabilities through buyout or other settlement strategies.
Horizon provides analysis and modelling to help schemes determine whether run-on is appropriate and, where it is, to support the design and implementation of a run-on strategy. According to the firm, the service focuses on balancing the interests of members and sponsors while schemes approach their long-term objectives.
The consultancy said demand is growing for both detailed analysis and practical guidance as schemes reach endgame. Horizon’s modelling framework is designed to help trustees and sponsors assess factors including timescales, risk tolerance, growth objectives and the level of flexibility they require.
It also explores how outcomes for members and sponsors may vary under different strategies, including alternative approaches to surplus generation and sharing.
The firm said the service is intended to support collaboration between trustees, sponsors and advisers by helping schemes identify and prioritise potential risks and benefits. Horizon aims to help stakeholders decide whether a scheme could run on and how the strategy should be structured as it approaches endgame.
Hymans Robertson head of DB scheme actuarial services Laura McLaren says: “As funding levels and objectives shift, the endgame landscape is changing rapidly. DB schemes are faced with endgame planning where choices are far more complex than just a ‘run-on or buy-out’ discussion. Run-on can unlock real-world benefit and improve member outcomes, but trustees and sponsors need support to understand the detail and ensure that it’s consistent with long-term objectives. Purposefully choosing to run on will be much more effective than ‘drifting’ into it.
“Horizon has been created to help schemes agree a clear way forward. It offers clarity, confidence and structure to decide whether run-on is right before a scheme commits further. This avoids wasted effort and cost. Bringing together insight, modelling and experience so schemes understand how deciding to run-on could unlock value for members and the sponsor. It reflects the shift we’re seeing from schemes of all sizes that want a deeper understanding of their options. Especially how the impact on members – value, outcomes and experience – compares.
“The service tests the economics of running on, explores the potential value and risk, and how outcomes may differ under a range of approaches. Once there’s agreement in principle, it helps to design and optimise a strategy that works for everyone with clear governance to support effective implementation.
“What we’ve heard from trustees and sponsors is that they want clear analysis and thoughtful practical guidance. Horizon has been built with those expectations in mind. It encourages collaboration and informed discussions, giving schemes the clear vision they need at every stage of a run-on journey.”