Maintaining the status quo is no longer an option for employers with defined benefit pension schemes. After over a decade of battling to maintain funding levels against low interest rates and rising member life expectancy, scheme sponsors are now under renewed pressure to aim higher. The Pensions Regulator’s 2019 DB funding statement will force employers to have long-term funding strategies, but what should management consider before picking between buyout with an insurer, so-called low dependency strategies and the as-yet untested superfunds? Whichever solution corporates pick, competition for suitable assets will be fierce, and a capacity crunch could see pricing change in the risk transfer market. If employers do decide to remove risk via a bulk annuity transaction, what steps can they take to make sure they get a competitive price?
What impact do risk transfers, especially buy-ins, have on a scheme’s funding level and ability to generate returns, and indeed on the employers standing behind them? What investments should schemes aim to hold in preparation for a transaction? Are superfunds a viable alternative for schemes? This confidential editorial dinner, organised by the Financial Times Group and Pensions Expert in association with Pension Insurance Corporation, will bring together Chief Financial Officers from a range of sectors to discuss which schemes are better off with a risk transfer and which might be better served with a run-off, and to compare different scheme transaction options in terms of cost and risk.