In recent years the various risks associated with running defined benefit schemes have resulted in significantly higher costs for employers. Extreme volatility in the investment markets, longevity and low interest rates have all contributed to the higher pension costs and many employers are now pressed to act to control and perhaps remove the risks involved to relieve these economic pressures. However, the responsibility placed on various stakeholders can result in the plan sponsor facing opposition, from the scheme trustees, members and possibly unions, in purporting to wind-up.
The wind-up of any pension scheme presents many challenges for all involved. Throughout this process, effective and regular communication between all stakeholders is a key component to ensure success. Our experienced consultants are focused on assisting corporate plan sponsors and trustees with their pension challenges. We also utilise our multi disciplinary skill set of actuaries, pension and HR consultants, communication specialists, tax and credit advisory specialists to bring more commercial and holistic solutions to these challenges. We understand that pension scheme wind-ups can be a stressful time for scheme members. Our in house specialist communication team can manage this process by holding one to one counselling sessions for members to enhance their understanding in relation to the scheme changes while also educating members on alternative funding strategies for effective retirement planning.
How we can help clients:
Please do not hesitate to contact a member of our Pensions and Reward Services team with any queries you might have.