Pensions liability management


It is crucial for employers and trustees to manage their pension scheme liabilities effectively, whether they are private sector occupational schemes, public sector arrangements or group personal schemes.  The market for liability management has developed significantly and a large part of the challenge for our clients is understanding what the options are and which approach is right for the particular circumstances and risks involved.

Our pensions team has a wealth of experience of advising on all types of liability management. We give tailored, practical advice and have a proven track record of innovative thinking in this area. Our advice ranges from steps to address the growth of future liabilities (for example scheme closures to new members and accrual of benefits) to ways to manage past service legacy liability. The options are varied and wide ranging all of which are targeted at improving the scheme's funding level and /or reducing risk.

Often the most effective approach comes from taking a holistic approach to the client's circumstances which can led to the implementation of a strategic project involving corporate restructuring and a combination of liability management exercises. We operate a full service firm and regularly work with our wider teams to ensure our clients have the expertise and resources they need to put in place the right solution.

In brief

  • Closures to new members and future accrual
  • Cutting final salary linkage
  • Deficit management agreements
  • Restructuring and apportionment arrangements
  • Buy-in and buy-outs
  • Transfer-out exercises
  • Mergers of pension arrangements
  • Parent company guarantees and other contingent assets
  • Liability driven investment (LDI)
  • Benefit changes
  • Putting in place new arrangements
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