Announcing our series of events covering the different elements of endgame planning and implementation that trustees and sponsors of DB pension schemes need to be taking now.

Purchasing a bulk annuity is an intensive process which can take years of planning; data work; broking and more data work before buy-out and wind-up. But without properly understanding and managing residual risks, members could be left high and dry; sponsors may have to re-open chequebooks….and trustees could end up with fines (or worse).

In the latest episode of our endgame webinar series, Happily ever after? we’ll explore the risks not covered by a typical bulk annuity policy and the combination of protections and approaches available to close these off. 

Joined by guest speakers from lawyers and a specialist in indemnity cover from Marsh, we will explore:

• Trustee requirements and responsibilities
• Risks left behind after a buy-in
• Existing protections and protections from the process
• Additional protections available by insurance
• Additional protections from employer indemnity
• Pros and cons of the different approaches

Date: 26th September 2024 

Time: 11am BST

You wouldn’t build a house without laying firm foundations first. The same is true for a bulk annuity, without the right asset strategy underpinning your scheme, the deal could collapse.

We considered asset strategy in the run up to a transaction and in particular how to approach setting the credit allocation in the current market environment.

We discussed with our guest speakers:

• How to balance matching pricing moves in the run up to buy-in versus holding desirable assets to pay the premium
• Views on interest rate and inflation hedging
• Their preferred approach to illiquids and appetite to take these in-specie
• What solutions they implemented last year
• How ESG principles factor in to their investment strategy and whether they price sustainable assets more favourably

Watch back our webinar to find out how to avoid the hangover as the clear up after the party starts. We were joined by a range of experts who guide you through the crucial stages along the post transaction path and explain how you can navigate pitfalls as you cleanse data and tie up loose ends; maintain a clear focus on members and cover off all remaining risks.

2024 is already proving to be a big year for bulk annuities with more £1bn+ deals in the market than ever before and many predicting that volume records will tumble yet again. Against this backdrop, how do you ensure that your smaller deal doesn’t get squeezed?

Watch back our webinar to hear why you can ignore the scaremongering and find out how well-prepared smaller transactions from £250m all the way down to £1m schemes are still getting traction - and favourable pricing - despite the busy market.

We were joined by a range of experts who will share their insights on the whole process; from setting initial strategy and getting market ready, to negotiating and executing the optimal deal, as well as how new innovations and developing approaches can help you achieve your aims.

As the dust settles on another record year in the bulk annuity market, it’s time to take stock and plan for 2024.

2023 was a record year for bulk annuity transactions. And, with arguably more schemes than ever looking to transact in the near future, and new innovation from advisers and insurers, there’s no reason to think we won’t be saying the same thing the end of this year.

Watch back our webinar as we shared what learnings have been taken from 2023 and some of the key trends to look out for this year.

Fiduciary Management has continued to grow and evolve over the last few years, with many trustees deciding that it is the most appropriate investment and governance solution for their scheme. Funding levels for these schemes have typically improved more than the average UK DB pension scheme, showing the success that is possible under this approach.

We discussed whether Fiduciary Management can continue to add value for your scheme, regardless of the endgame you are targeting and how close you are to achieving it.

We are seeing an increasing range of considerations that trustees and sponsors are taking into account when selecting an insurer for a bulk annuity deal. From insurer financial strength and ESG considerations, to cyber and data privacy protection, not to mention the quality of member experience post transaction – it’s clear there is now more to a deal than just the price. 

Watch back our webinar where our Mercer experts were joined by a Professional Trustee to discuss how these factors have influenced the decision making in recent transaction they have been involved in.

Now we’ve discussed the options, it’s time to talk practicalities - whether you are aiming for buyout or planning to run off your scheme, your assets will need to be positioned correctly. The amount of hedging, cash flow matching and return seeking allocations will vary. And whether to sell private market exposures or take tactical opportunities to acquire them will depend on your end game destination.

Watch a recording of our webinar where Mercer experts will be joined by an insurer to talk you through a recent buyout success story.

A buyout is not the only way for trustees to increase member benefit security. There are an increasing number of alternatives that may add value for DB scheme members and theirs sponsors.

Watch a recording of our webinar where John Gething, hot from his session at the PLSA Investment Conference, and Roanna Lynch will take you through the alternative endgame options.

Watch back our LinkedIn Live session for insights on how the buy-in/buy-out market is adapting to increased demand and how size, timing and other deal features impact how you get the best outcome for all stakeholders.  

Featuring perspectives from insurers, this session will provide valuable insights for anyone planning a transaction. Whether you're managing a multi-billion pound scheme or seeking a sub-£100m transaction, we’ll help you navigate the market and make informed decisions.