buyout

Pension buyouts are set to break all records next year, after deals for the first three quarters of 2010 exceeded all of 2009, Pension Capital Strategies says.

Increasing numbers of firms are closing defined benefit schemes to future accrual as they struggle to meet obligations, Lucida says.

Timber merchant Arnold Laver has addressed its £43m pension scheme liabilities by undertaking a buyout with Pension Insurance Corporation.

About two-thirds (65%) of buyout deals conducted in the first half of this year involved premiums of less than £10m, Mercer research finds.

Trustees of the Alliance UniChem UK Group Pension Scheme have insured £300m of liabilities with Pension Insurance Corporation.

The pensions buyout market is likely to see more than £10bn of deals completed this year, Pensions Capital Strategies says.

The possible move from Retail Prices Indexation to Consumer Prices Indexation to index private sector pension increases will force schemes to amend de-risking contracts, industry figures say.

Trustees could be on the hook for liabilities up to 15 years after a buyout has occurred if they fail to take adequate insurance cover, lawyers warn.

The buyout and risk reduction marketplace has grown significantly over the past two years.

The value of buy-in and buyout exercises in Q2 is expected to exceed the £1bn mark for the second consecutive quarter, Hymans Robertson says.