Ensure pension risk transfer decisions drive your scheme forward
Pension risk transfer - the new normal
In addition, more DB schemes than ever before are looking at providing their member benefits with greater flexibility through member option exercises. With expert guidance, trustees and sponsors can take advantage of the plethora of solutions. They can seize the opportunities that will accelerate their journey to their endgame.
We can help you move forward.
How we have helped our clients
The Mercer Risk Transfer team advised the trustees of the Thales UK Pension Scheme on the £2.7bn insurance transaction with Rothsay Life.
The transaction covers the retirement income liabilities of around 10,500 pensioners and almost 6,000 deferred members. It required a number of interesting features to be worked through, including:
• A single premium transaction provides residual risk cover from the point of buy-in. This cover was secured after an intensive due diligence exercise.
• A variety of innovative solutions for transferring the illiquid assets which the Scheme held.
• Innovation in the approach to defined benefits and data validation to ensure all objectives were met.
• Ensuring member experience is maintained following the buy-in.
“It has been a privilege for the Mercer team to support the Trustees through this transaction. In a very busy insurer market the effort put in by all parties over recent weeks to make this transaction happen has been phenomenal. This demonstrates again that large, complex transactions can complete successfully with clear objectives for all parties to work towards.”
Ben Stone, Risk Transfer Partner at Mercer
Mercer and Cardano Risk Transfer teams have advised on...
deals as lead/major adviser 2022 - 2024
annuity deals above £2,000m, including leading the £4.8bn for Boots
UK longevity swaps for signification non-pensioner populations
Investment considerations for risk transfer transactions
Mercer Risk Transfer's streamlined approach for schemes below £100m
In recognition of this market development Mercer have refined our streamlined approach to completing buy-ins and buy-outs for schemes below £100m.
There are now more pension schemes requesting buy-in and buy-out quotes than ever before with some insurers now completing a transaction every week. This increase in demand has impacted smaller schemes in their ability to obtain competitive quotations from busy insurers.
Our pension risk transfer team can help trustees and sponsors of defined benefit schemes identify the most effective way to manage, reduce or remove risk.
Leader Risk Transfer and DB Journey Planning
What are your pension risk transfer options?
There is no ‘one size fits all’ approach to transferring pension risk. Each DB scheme has its own set of circumstances and strategic objectives.
Our first step will be to work with you and all relevant stakeholders to understand your DB scheme's strategic objectives. We will then work in partnership to identify the pension risk transfer solutions that are right for you and your members.
There are several solutions available for schemes in the process of assessing their DB pension risk transfer options. Mercer believes that all defined benefit (DB) pension schemes should consider which activities fit align with their long-term strategy. THey should also evaluate how and when to deploy these activities.
Our team
dedicated consultants
strong team of analysts
combined years of specific risk transfer experience
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