UK - JLT Pension Capital Strategies has started a dedicated de-risking service to help sponsors and trustees efficiently work towards a pre-agreed defined benefit exit strategy.
The consultant's implemented de-risking platform sees both sponsor and trustees sign up to an agreed de-risking plan within a set time frame which has trigger points for locking in asset gains and running liability reduction exercises.
Strategies can include automatic and ongoing liability management through regular enhanced transfer values, pension increase exchanges, immediate vesting of personal pensions and early retirement exercises.
JLT Pension Capital Strategy managing director Charles Cowling said: "We have been saying for some time that DB schemes are on the way out, they are being closed in large numbers. We expect that trend to continue quite dramatically over the next two years, due to the impact of tax changes for higher earners and auto-enrolment.
"We are in a situation where pension schemes largely represent legacy liabilities. It is in everybody's interest, when you are in that situation, for those legacy liabilities to be managed efficiently and focused way."
He said the consultant had done a lot of work with sponsors and trustees on de-risking, which prompted it to launch the focused service.
Cowling (pictured) explained: "You go through a strategy discussion at the start so that everybody signs up to what we are trying to achieve.
"We set triggers for agreed programmes of liability management exercises and similarly with the assets we will lock in asset gains at trigger points and have a managed end-game strategy which - because both parties sign up to it - ensures there are not months of discussion on what we are going to do next.
"There is a clear road map, so you don't miss market opportunities."
The consultant will also offer focused administration services, such as data cleansing. It can also set up targeted scheme closure and settlements.
An option within the platform allows an existing pension scheme to be de-merged into new pension schemes for just deferred pensioners and/or current pensioners.
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