Interest rates have remained low while life expectancy is still rising, and so are pensions costs, putting pressure on business accounts. Pension risk transfers have become more common in recent years as companies look for new ways to de-risk their pension liabilities. However, volatility in equity markets and low gilt yields mean that sponsors may not be in a position to execute a full buyout, instead keeping their schemes in-house. But what are the advantages of outsourcing a pension scheme to an insurer compared with run-off? How can sponsors secure enough funding for de-risking? How do governance procedures and standards before and after a buyout compare? What is the current pricing for risk transfers?
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 run-off, and to compare different scheme transaction options in terms of cost, risk and governance.