DB Schemes Managed Wind-Up

Shocked by your latest valuation?

Concerned over the lack of control you have on your pension costs?

DB scheme affecting the sale of your company?

Three of the major risks facing Defined Benefit (DB) pension schemes are Inflation, Investment Underperformance and Life Expectancy, all of which you have no control over.  This lack of control is making many companies very uncomfortable with the level of volatility they have with their pension scheme liabilities and assets.

In response to the needs of our clients, we have developed a service to assist with the reduction of scheme liabilities and help wind-up a DB pension scheme. Our ‘Managed Wind Up’ package encompasses a variety of the services and has been designed to meet the needs of companies sponsoring DB schemes no matter what stage of their lifecycle they are at.

The timescale of our services will vary for each scheme depending on the current position and available cashflow.  The first stage of a wind-up is to close your scheme to accrual of future benefits if this has not already been done.  Alexander Forbes Financial Services has long experience of helping small-to-medium size employers communicate this process to their staff and establishing a defined contribution solution which will be beneficial to both employers and employees. 

Once your scheme is closed, our services include the provision of full services including actuarial, administration and consultancy on a fixed fee basis; liability reduction exercises (such as the calculation and communication of Enhanced Transfers, reduction of non-statutory increases), advising on asset allocation throughout the process as the scheme profile changes, monitoring assets and liabilities on an on-going basis and matching liabilities at appropriate times, transferring liabilities to insurers.  This will enable us to wind-up your scheme at the most optimal time for you.

By winding up your DB pension scheme you will achieve the following benefits: -

·          Reduce management time spent dealing with your company’s employee benefits scheme;

·          Reduce time spent by trustees and their responsibilities/potential liability for errors;

·          Reduce administration costs;

·          Remove all further risk to the business from the scheme;

·          Remove the requirement to pay for Pension Protection Fund levies.

We can offer you a tailored Managed Wind-Up package at a fixed fee, if you would like us to contact you, please contact one of the following: -