Tags: liability management

Pensions Arena October 2018

Why work hand in glove?

Golfers thumbs up

Funding valuations have often been a source of conflict between companies and trustees. However, a growing number of companies are finding that working hand in glove with their trustees not only means a smoother valuation process but also leads to more effective funding and investment decisions.

In this Pensions Arena, which summarises our June 2018 Pensions Perspective, we explain why this often makes good sense from the sponsor’s perspective.

And, of course, October’s Pensions Arena contains all the usual financial and investment analysis for the quarter ending 30 September 2018, presented in the BAC Dashboard.

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Pensions Arena July 2018

Tales of the Unexpected

man in boat on drought land

DB pension schemes are inherently long-term in nature: the last child’s pension arising from America’s civil war is still being paid, 150 years after the war ended! This long-term nature is fundamental to how they are managed but what happens when the life of a scheme is cut short unexpectedly?

In this quarter’s Arena article, “Tales of the Unexpected”, we look at some of the ways in which sudden and unexpected short-term developments can cause issues for a scheme which is being managed in a traditional long-term way. Our focus is on practical steps that can be taken now to prevent problems in the future.

And, of course, July’s Pensions Arena contains all the usual financial and investment analysis for the quarter ending 30 June 2018, presented in the BAC Dashboard.

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Working hand in glove

Funding valuations have often been a source of conflict, or at least robust negotiation, between companies and trustees. However, a small but growing number of companies are finding that working hand in glove with their trustees not only means a smoother valuation process but also leads to more effective funding and investment decisions.

smallglovewebphotoIn this Pensions Perspective, Andrew Udale-Smith looks at how this relatively new model of working together has come about and explains why it can often make good sense from the sponsoring employer’s perspective. Andrew suggests that, although some may protest that hand in glove was the way companies and trustees used to work, before the Regulator and a scheme-specific funding regime arrived on the scene in 2005, in most cases, that was often a relationship in which the company called the shots and the trustees followed. The model Andrew discusses here is quite different.

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News for week ending 9 June

In this week’s news, the UK has a hung parliament for the second time in three elections, whilst a scheme uses medical underwriting to reduce its liabilities by more than 10%.

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Pensions Arena October 2014

October’s Pensions Arena contains all the usual financial and investment analysis for the quarter ending 30 September 2014, presented in the BAC Dashboard.

This quarter we also have an extract from our Pensions Perspective “2015 valuations – putting funding on a firmer footing”. After tough funding negotiations in the last three years, the 2015 round of valuations presents companies with an opportunity to make significant, joined-up progress in their funding, de-risking and liability management plans. We consider three possible areas of change and how they can be used to reduce the cost of DB accrual and/or to bring increased stability to funding.

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