Almost two out of three trustees are now putting in place measures to prepare their scheme for Brexit, despite the ongoing uncertainty.
This survey, by Hymans Robertson, found trustees were taking a variety of steps to protect schemes from any potential Brexit fallout.
Over a third of respondents to the survey (37 per cent) had reviewed their employer covenant in light of Brexit, and 29 per cent had considered their contingency plans.
In addition a further 23 per of trustees hadincreased interest rate hedging, in anticipation of a fall in yields, while 12 per cent had decreased their exposure to overseas currency, with a view to sterling further falling in value.
However, despite many taking precautions, over a third (36 per cent) of trustees said that they had done not done anything to prepare for Brexit.
Hymans Robertson partner and head of DB trustee consulting Susan McIlvogue says: “It is encouraging that almost two-thirds of trustees are taking proactive steps to manage Brexit related risks.
“It is good to see that many schemes have implemented extra protection against market instability, with almost a quarter increasing their interest rate hedging. With yields falling over 20bps in March this decision is already paying off for those schemes.
“It is also reassuring to see that a significant number of trustees are reviewing contingency plans and the covenant of their sponsoring employer. These are key areas to keep under review until the impact of Brexit becomes clearer.”