A number of companies have recently called time on their pension schemes.  P&O (shipping), Emap (media), Weir Group (manufacturing) and Rank Group (leisure) have all made the decision to buy-out their pension liabilities with an insurance provider.

The pensions buy-out market exists for companies that want to pass on their pension liabilities to an insurance company.  Buy-out removes the balance sheet liabilities and the associated risks.

Activity in this market is prompting other companies to consider their own pensions strategy and in particular, the suitability of buy-out.  The trustees manage the scheme, but it is the company who ultimately bears the risks and costs.  Companies must consider these costs and risks, alongside their HR goals.

We have developed Pensions Road Map, an independent methodology, to help companies:

• Understand the costs and risks they are exposed to under the current operation of their pension arrangements.
• Compare these costs and risks to the position following a buy-out of the liabilities.
• Evaluate the alternative solutions (e.g. partial buy-out, liability-driven investment).
• Determine the route to their optimal pensions strategy.

For more information, please download our publication Pensions Road Map. (PDF, 228KB)