Almost one in four pension professional remains unsure about whether run-on remains a viable option for DB schemes, according to new research.
The finding were from a poll of of over 400 actuaries, trustees and lawyers working in the DB sector, held by The Society of Pension Professionals (SPP) and the Association of Pension Lawyers (APL).
Nearly a quarter (22 per cent) ) of respondents agreed with the statement “No, for all or most of my schemes, risk transfer remains the only viable long term strategy.”
The majority (69 per cent) said it would only be a serious consideration for some of their schemes, with just 9 per cent saying run-on would be a viable option for most of the schemes they work with.
SPP member Natalie Mee — who is a partner with CMS Cameron McKenna Nabarro Olswang says “The SPP polling demonstrates that there is no one-size fits all solution for pension schemes. For some, DB run-on may be the best option, for others it’s risk-transfer.
“The fact that so many schemes enjoy strong funding and strong covenant support means they now have genuine choice when it comes to making their endgame decision and that’s something we should all welcome.”