Closed Pension Schemes

Published by Paul Hamilton on

Pension schemes which have been closed to new members or to new benefit accrual bring many challenges for their trustees.

In particular many closed schemes may expect to run off over a long period of time and need a cost-effective advisory service during this period that will minimise management expenses.

Closed schemes need to pay particular attention to investment strategy and ensure that the future levels of investment risk are appropriate to the circumstances of the scheme and the employer.

Pension schemes which have been closed to new members, or to new benefit accrual, form a significant proportion of our client base and we provide specialist advice accordingly that draws upon our relevant experience.

We have an excellent understanding of the bulk annuity market and the options for trustees to buy-out benefits, including options for phased buy-outs, partial buy-outs, and passing a scheme to a financial institution to act as a replacement sponsoring employer. We can also provide a scheme-specific longevity analysis which can be useful information for a scheme considering an approach to the buy-out market.