Arc Pensions Law is collating data about the current buy-out market for defined benefit pension schemes. The pensions press is full of stories about a frantic market with a lot of pressure on schemes to get the buy-out done. We want to find out if this matches what all of our clients and contacts are actually seeing in practice.

It would be helpful if you could complete our survey by 5 September 2023. This survey will take no more than 10 minutes to complete.

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1. Profile

Please select your role: *

• Individual trustee
• Corporate trustee
• Professional trustee
• Adviser / consultant
• Broker

As part of your role do you have any influence over UK defined benefit (DB) pension schemes? *

• Yes
• No

How many years’ experience do you have of working on buy-in and buy-out insurance transactions in relation to UK DB pension schemes? Tick box *

• Less than 2 years
• Over 2 years and under 5 years
• Over 5 years and under 10 years
• More than 10 years

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2. View of the market

Do you think that the average number of bulk annuity transactions undertaken each year is sustainable? *

• Yes
• No

Why do you think this?

Do you think DB consolidation is a comparable alternative? *

• Yes
• No

Why do you think this?

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3. What is driving the surge in the buy-out market?

Have you felt pressure to go to market sooner than you would have liked? *

• Yes
• No

When did you first feel this pressure? *

• In the past 6 months
• In the past 6-12 months
• In the past 12-18 months
• More than 18 months ago

Where did this pressure come from? Tick all that apply

• Advisers
• Sponsors
• Trustees
• Governmental bodies

Do you think there are consequences to expediting the buy-in or buy-out process? *

• Yes
• No

If yes, what do you believe those to be? Tick all that apply

• A better price
• A worse price
• More efficient decision making
• Not enough time for decision making
• Other

If other, please specify

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4. Getting ready for a transaction

Have you worked or are you currently working on a buy-in or buy-out transaction? *

• Yes
• No (if no, please go to section 7)

During the process have you identified any issues within your scheme that you did not know about? *

• Yes
• No

If yes, what were they? Tick all that apply

• Incorrect data for known members/beneficiaries
• Missing members/beneficiaries
• Incorrect benefits being paid – underpayments
• Incorrect benefits being paid – overpayments
• Systemic administrative discrepancies
• Other

If other, please specify

Were you able to find proportionate and pragmatic solutions? *

• Yes
• No

If yes, what were they?

Were the issues ones which you think you should have known about? *

• Yes
• No

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5. Collaboration and cooperation

In your experience, have trustees and employers worked collaboratively during a buy-out process? *

• Yes
• No

In your experience, did the advisers to the trustees and employers actively engage with each other? *

• Yes
• No

Do you think collaboration leads to a better outcome? *

• Yes
• No

Did you find a new adviser to guide you through the buy-in or buy-out process (rather than use your ongoing advisers)? *

• Yes
• No

If not, did you consider using a different adviser?

• Not at all
• Yes – we briefly discussed it
• Yes – we spoke to other advisers

Did you have a formal project plan in place? *

• Yes
• No

If yes, who managed this plan?

• Outsourced project manager
• An existing adviser
• Internal team member

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6. Managing the project and risk

When thinking about buying-out, did you (and the decision makers for your scheme) consider other alternative options? *

• Yes - we completed an evaluation of all options
• Yes - we discussed it at a high level
• Not at all

When selecting an insurance company to provide a buy-in or buy-out, which areas regarding the insurer formed part of your evaluation? Tick all that apply *

• Financial strength
• Administrative capability
• Team credentials
• Price
• Track record
• Brand name
• Ongoing member offering

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7. Trustee understanding

Do you think that the concept of buy-in and buy-out is fully understood by trustees *

• Yes
• No

Do you think trustees understand their personal liability? *

• Yes
• No

Do you think there are sufficient protections available to trustees following scheme buy-out and wind-up? *

• Yes
• No

Are you confident that you understand the risks? *

• Yes
• No

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