02 February 2023
Partner & Head of Corporate Consulting
Head of Corporate DB Endgame Strategy
Our corporate client, a leading financial institution, had a well-funded defined benefit pension scheme (however they were at least a few years away from reaching buy-out) and wanted to review their endgame objectives. We helped them to consider whether to target buy-out or to run-off their pension scheme, with a view to economic value being shared back to the company at a later date.
We helped the company understand:
The potential financial benefits and risks from pursuing a buy-out or run-off objective
How the company could extract value from the pension scheme under the run-off objective
The impact of low likelihood but high adverse cost events (i.e. black swan events)
The practical and legal considerations of following either strategy.
Read more about how this process led to establishing the preferred strategy in our case study.
If you’d like to discuss your approach in more detail, please contact us, or your usual Hymans Robertson contact.
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