UK - Pensions buyout business in 2009 will match 2008 levels of around £8bn (US$11.3bn) in 2009, Lane Clark & Peacock (LCP) research reveals.
It said, while buyout prices remained above the historically low levels seen in the first half of 2008, a typical scheme could expect to complete a buy-in of their current pensioners at broadly the same cost as the amount of the funding reserve agreed between companies and trustees in their actuarial funding valuations.
Despite this, it said depressed equity markets were having an effect on deal flow - and noted activity in the buyout market was dominated by pensioner-only transactions.
LCP partner Clive Wellsteed said: "With most businesses suffering as the recession takes hold, risk can be reduced on the corporate balance sheet without tying up valuable cash.
"For the trustees of pension schemes, transferring risk to an insurance company is often a welcome trade-off against a deteriorating employer covenant and likely to be on the agenda for many pension schemes in 2009."
The report also pointed out the increased interest in longevity swaps, potentially offering an alternative to buy-in for schemes looking to reduce exposure to the risks of improving life expectancy while retaining direct control of their assets.
The Pensions Regulator (TPR) and Labour MP Stephen Kinnock and will listen to the experiences of steelworkers when transferring their pensions away from the British Steel Pension Scheme (BSPS) next week in Port Talbot.
Just Group has acquired a 75% stake in the holding company of Corinthian Pension Consulting in a bid to strengthen its professional defined benefit (DB) advisory services.
The Pensions Regulator (TPR) has exercised its production order power under the Proceeds of Crime Act 2002 for the very first time as part of a fraud investigation.
The ITN Limited Pension Scheme has named Trafalgar House as its administrator for an initial term of five years.