We recognise the pivotal role played by pension scheme advisers, trustees and sponsors in safeguarding the financial futures of scheme members. We understand the time constraints, the weight of decision-making, and the need for tailored solutions that address the unique needs of each Defined Benefit Scheme.
In a landscape transformed by evolving market dynamics, heightened financial responsibilities and shifting regulations, DB pension scheme advisers, trustees and sponsors face unprecedented challenges. The pressure to manage schemes efficiently, identify suitable solutions, and navigate the complexities of de-risking has never been greater.
We are committed to offering a comprehensive service that places relationships and people at the forefront. We stand as a partner, not just a provider, dedicated to supporting pension schemes at every stage of their de-risking journey.
Your journey, our solutions
We have the experience and expertise to guide you through our pension de-risking solutions, from initial conversations to delivery and ongoing support. We are committed to delivering commercially-focused outcomes and meeting the desired endgame solution for your scheme.
Buy in / Buy Out
The key aim for a Trustee is to safeguard the payment of members' pensions now, and in the future. There are a number of risks which makes this goal not as straightforward as it seems - longevity, inflation and investment. These can impact the funding position of a scheme and transferring pension risks through a buy-in or buyout can help
All BPAs are highly bespoke transactions that are individually negotiated. Our aim is to safeguard the payment of members' pensions now, and in the future. There are a number of risks for a Pension Scheme trustee which makes this goal not as straightforward as it seems - longevity, inflation and investment. These can impact the funding position of a scheme and transferring pension risks through our buy-in or buyout solutions can help.
We have appointed Willis Towers Watson to provide an online pension portal. This comprehensive system deploys the latest internet technologies, the portal allows members access to answers, anytime, anywhere with 24-hour access. It will allow members to plan and project their own retirement goals, increases pension understanding, encourages access to on-line finance educational resources and promotes peace-of-mind about retirement plans.
We have the experience and expertise to guide you through our solutions, from initial conversations to delivery and ongoing support. We are committed to delivering commercially-focused outcomes and meeting the desired endgame solution for your scheme.
Additional Funding Solution (AFS)
Not all schemes are at the point of buy out and sponsors may have growing concerns around pension schemes accumulating a build-up of surplus. As a result, scheme sponsors and trustees may be looking for alternative solutions that further their objectives. That’s where we can help.
We are offering a funding solution which helps sponsors of Defined Benefit pension schemes efficiently manage their pension obligations, as well as providing the scheme with protection against sponsor insolvency. In addition, it helps to avoid issues around “trapped surplus” and provides additional investment freedoms by allowing contributions to be invested into a select range of M&G Investments funds.
Also, Mergers and Acquisitions (M&A) involving DB pension schemes can be tricky to navigate, with careful planning and consideration needed to protect the scheme’s position, mitigate risk and also allow the opportunity to create value. our AFS may be a suitable solution to help with these concerns.
How it works
We have the experience and expertise to guide you through our solutions, from initial conversations to delivery and ongoing support. We are committed to delivering commercially-focused outcomes and meeting the desired endgame solution for your scheme. [Insert Call To Action]
Captive Reinsurance
How it works?
The Trustee enters into a standard buy-in policy with Prudential Assurance Company (PAC), scheme members then benefit from a fully insured solution
PAC is the life insurance arm of M&G, and M&G manages the assets in both PAC and the Cell for the transaction
A Protected Cell Company Reinsurer creates a bankruptcy remote and project-specific insurance cell that underwrites the risk to PAC that Best Estimate Liabilities (BEL) assets are insufficient to meet expected benefit payments
The Sponsor makes a small upfront investment and expects to receive most of the reinsurance premium as profit over time
We have the experience and expertise to guide you through our solutions, from initial conversations to delivery and ongoing support. We are committed to delivering commercially-focused outcomes and meeting the desired endgame solution for your scheme. [Insert Call To Action]
CDI
We offer solutions that evolve through the life of a scheme to efficiently match changing cashflow requirements. This allows us to put a scheme’s specific needs at the heart of the process, blending private, very secure assets that have the potential to offer high-quality cashflows with more liquid public debt.
We have a long heritage of cashflow investing, having run a combined £21bn of group annuity funds since 1999. This annuity investing approach, alongside our extensive experience of running outcome-orientated portfolios across both public and private assets, allows us to provide bespoke cashflow solutions.
For schemes who are unable or unwilling to approach the insurance market, we have developed a solution that utilises our expertise across both asset management and insurance to deliver schemes an investment-grade, cashflow-matched portfolio, which may come with a partial guarantee and share of upside. Essentially providing interest rate hedging and the offer of a guaranteed return but without any longevity hedging, whilst also being able to provide access to our depth of in-house credit expertise.
We have the experience and expertise to guide you through our solutions, from initial conversations to delivery and ongoing support. We are committed to delivering commercially-focused outcomes and meeting the desired endgame solution for your scheme.
News and insights
Alternative risk transfer approaches
Listen to Russell Lee and Gurbani Swanni from our Solutions team talk about 'Alternative risk transfer approaches'
Is increased talk of scheme run-off a threat or opportunity for insurers?
Listen to Gurbani Swanni present at the recent Westminster and City Programmes Bulk Annuities Conference.
Meet the team
We have the experience and expertise to guide you through our pension de-risking solutions, from initial conversations to delivery and ongoing support. We are committed to delivering commercially-focused outcomes and meeting the desired endgame solution for your scheme.
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