Corporate Adviser
  • Content Hubs
  • Magazine
  • Alerts
  • Events
  • Video
    • Master Trust Conference 2024 videos
  • Research & Guides
  • About
  • Contact
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG
No Result
View All Result
Corporate Adviser
No Result
View All Result

Strategic pause advised for DB schemes ahead of endgame decisions

by Muna Abdi
May 17, 2024
Share on FacebookShare on TwitterShare on LinkedInShare on Pinterest

Hymans Robertson has urged trustees to take a “strategic pause to evaluate and explore all options” before settling on an endgame strategy, emphasising the unique challenges well-funded schemes face compared to those with shortfalls.

Hymans Robertson’s latest update to their ‘Excellence in Endgames’ insights hub has highlighted the growing number of alternatives for trustees and sponsors, showing the different approaches required for well-funded plans ready for insurance versus those with large deficits.

It suggests that well-funded schemes face unique challenges compared to those with shortfalls, particularly in light of the unprecedented turbulence of the past five years.

According to Hyman Robertson, the past five years have been difficult for trustees and their members, with unexpected occurrences like the pandemic, a worldwide financial crisis, and severe volatility in the gilts market.

It suggests using tools like the insights hub which can assist trustees in exploring various scenarios and potentially adopting alternative approaches, such as deferring insurance or using other settlement options, while also taking the necessary time to evaluate all options and reassess their position once strong funding levels are achieved.

Hymans Robertson head of alternative risk transfer Iain Pearce says: “For trustees and their members, the last five years have been turbulent in a way that no one could have foreseen. A pandemic, a global financial crisis and extreme volatility in the gilts market are just a few of the huge events that no-one saw coming.  It’s understandable that trustees would like to offer their members the greatest stability they can after such a period of uncertainty and race towards the goals they have previously set.

“However, given a decision to settle cannot be undone – very well-funded schemes face a different range of opportunities and challenges to schemes with a shortfall. This means that taking stock and considering all options is crucial to making the best decisions and of huge value. 

“Schemes that have reached the point of being able to insure benefits should consider the consequences of following a range of options. Whilst continuing to be able to afford to insure is important, the more fundamental questions are how is the risk of failing to pay full benefits, or needing more money from a sponsor, changing between options. Stopping to consider different scenarios using our insights hub may lead to trustees adopting a very different approach, for example, deferring insurance or using alternative settlement options.

“We recommend Trustees explore these issues and, if needed, have the confidence to take the time to evaluate the range of options available to them and reassess their perspective once they have reached these very strong funding levels.”

Corporate Adviser Special Report

REQUEST YOUR COPY

Most Popular

  • Death-in-service benefits excluded from IHT grab

  • Aviva launches ‘flex first, fix later’ retirement option for master trust savers

  • Baroness Drake leads revived Pensions Commission re-examining AE levels and SPA

  • Laura Mason: This is the moment for targeted pension support

  • Industry welcomes revived Pension Commission

  • Stancombe to lead retirement platform business

Corporate Adviser

© 2017-2024 Definite Article Media Limited. Design by 71 Media Limited.

  • About
  • Advertise
  • Privacy policy
  • T&Cs
  • Contact

Follow Us

X
No Result
View All Result
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG

No Result
View All Result
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.