Partner Jane Kola last night spoke at the 23rd annual LawDeb Pensions Debate, one of the pensions industry’s leading annual discussion forums, bringing together more than 250 professionals from across the sector in London, Manchester and online.

Hosted by Law Debenture and chaired by their Managing Director Sankar Mahalingham, this year’s motion was:

“This House believes that buying out remains the gold standard for DB scheme members.”

Jane spoke in favour of the motion alongside Calum Cooper of Hymans Robertson, with Hattie Clover of Clara and Richard Gibson of Barnett Waddingham speaking against.

The debate reflected the significant shift currently taking place across the defined benefit pensions landscape. Improved funding positions, record levels of buyout activity and the evolving legislative environment have prompted renewed discussion around scheme endgame strategy, including whether buyout should remain the default objective for schemes or whether alternative approaches, including running on, may in some circumstances deliver better outcomes for members and sponsors.

Jane focused on the continuing strengths of the buyout model, including the security provided to members through insurer-backed benefits, the transfer of risk away from trustees and sponsoring employers, and the certainty buyout can offer in an increasingly complex regulatory and economic environment.

At the same time, the debate highlighted the growing nuance within the industry’s thinking. While buyout has long been viewed as the ultimate destination for many DB schemes, improving scheme health and broader market developments mean trustees and sponsors are increasingly assessing a wider range of endgame options.

The audience vote reflected how finely balanced the discussion remains across the industry, with the motion ending in a closely contested 51/49 split.

Thank you to Law Debenture for hosting another excellent event, and to everyone who attended and contributed to the discussion.

Read more here.