Liability transfers under fire

Jack Jones takes a look at the future of ETVs and PIEs

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Over the last five years many schemes have turned to liability transfer exercises as they attempt to manage their risk. So far these have mostly been one-off projects such as enhanced transfer value exercises where members - typically deferred - are offered an enhancement to trade in a defined benefit for a defined contribution pot.

Another popular option has been the pension increase exchange, where retired members are given the chance to exchange non-statutory future increases in return for a higher starting pension from the...

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