We can help you achieve your objectives, whether your focus is on making sure that you have the right pension arrangement to attract and retain your staff, or whether you are trying to deal with the ever mounting long-term costs and uncertainty associated with your defined benefit arrangement.
Helping you design and implement your scheme
We appreciate that you offer pensions to your employees as a key part of a competitive remuneration package and so it is important that your pension scheme is designed with this in mind.
We can help you to meet your individual objectives by understanding your constraints, cost or otherwise, and designing an attractive proposition that meets your requirements. We help our clients to design both defined benefit (DB) and defined contribution (DC) based strategies and have significant experience of re-designing and implementing changes to existing arrangements, whether amending the benefit structure for future accrual or closing the pension scheme altogether.
Helping you manage your long-term DB risk and control costs
We understand that DB schemes typically expose their sponsoring employers to significant risk that future contributions could increase. There are many ways in which we can help our corporate clients reduce their costs and risk, including:
- Long-term funding – the Pensions Regulator is increasingly keen to understand the long term objectives for your DB pension scheme. Whether this is to fund to a low dependency target, eventual buyout or simply run the scheme until the last member dies, we have a range of solutions to help you get there. Given the potential financial impact of choosing one destination over another, we consider that the sponsor should take the lead on this issue with their trustees and look to “set the agenda” for any future discussions on this important topic.
- Investment strategy – a key part of helping you to achieve your long-term target is to ensure that your scheme invests its assets in a way which helps it generate the required returns but without taking undue risk. We consider that funding and investment matters are inextricably linked. Our advice always draws on our expertise in both areas to design solutions to meet your needs.
- Member options – we consider that making members aware of their member options under the scheme rules is key. We have extensive experience of helping our clients to design member-focused transfer value, pension increase exchange (PIE), trivial commutation and flexible retirement options. We ensure members are given access to valuable benefit options whilst providing sponsors with the opportunity to mitigate long-term cost and risk.