Solutions

We tailor our solutions to meet the needs and requirements of trustees and plan sponsors, typically expressed in terms of risk reduction and cost.

Some of the solutions we have provided are:

Full risk removal and pension fund wind-up through full pension insurance buyout. This transfers all pension liabilities and risk to the insurance company. This will normally cost 10%-30% above the fund's own funding target. Variations to this approach include:

• Meeting the required premium payments over time
• Paying part of the premium via an in specie transfer of company owned assets such as property
• "All risks transfer" whereby responsibility for the management and costs of the pension scheme also transfer to the insurer. This allows the employer to be completely free of all pension requirements within days of securing the insurance policy,

Partial risk removal through a pension insurance buy-in. This typically involves transferring pension risks for a subset of the pension fund's liabilities, for example those for current pensioners in payment. The buy-in insurance policy is held as an asset of the scheme that exactly matches the insured liabilities and the insured pensioners remain members of the fund. A buy-in can cost 0-10% over the fund's own funding target. 

To discuss pension risk transfer solutions for your scheme, please contact:

Mitul Magudia or Uzma Nazir
+44 20 7105 2000
enquiries [at] pensioncorporation [dot] com