basillica

Managing change, distress and winding up

Benefit Redesign and Liability Management

The challenge of operating a defined benefit pension scheme is often as much about risk and uncertainty as the size of liabilities.  A vast range of factors affect the funding levels in a pension scheme. They can often be macro-economic issues that are outside the control of the employer or trustees, and quite unpredictable over the longer term.  Nonetheless, businesses are increasingly looking for certitude in this area, with plans for de-risking their pension arrangements.  Plans often include:

  • amending benefits where possible
  • changing investment strategies
  • buying in insurance policies and/or buying out benefits to the insurer, and/or
  • encouraging members to give up certain benefits or transfer their rights elsewhere in return for an enhanced benefit.

These options and any other de-risking proposals require careful legal analysis.  ARC Pensions Law can help determine which options work for you and help to manage the process, ensuring that any risks are appropriately identified and dealt with.

 

Understanding the benefits in the scheme is a fundamental form of de-risking.  Assessment in this area and engagement with trustees is known as ‘safe settlement’, and highly important for any employer trying to keep control of risk and uncertainty. Our expertise in this area is discussed in more detail here.

News
Closing Defined Benefit Pension Scheme at BA highlights liabilities

With some rather unseasonal timing, in mid December 2017, British Airways announced the bad news to staff of the planned closure of its defined benefits pension scheme ( the New Airways Pension Scheme, known as NAPS) to future accrual in April 2018, with a view to addressing the £2.8bn deficit in the scheme....

Key considerations for a pensions change project

There are three questions employers should ask before embarking on a pensions change project. First, they should question whether they can make the change. Employment contracts should be checked. If the change would breach the contract it will need varying. ...

Our vision

is to provide the highest quality, specialist pensions law advice and support for those involved in running workplace pension schemes

Our strategy

is to attract talented, dynamic individuals who share our values and support them in giving their best to our clients

Our values

Teamwork, contribution, integrity and respect
are core to who we are

ARC Pensions Law:

Pension schemes are our workplace,

Pensions law is our focus

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