College of Law Pension & Assurance Scheme
A further buy-in on the road to buy-out
27 Jun 2017 - Estimated reading time: 5 minutes
Background
We’ve been working with the College of Law Pension & Assurance Scheme for many years, providing investment and, more recently, actuarial advice. The Trustees’ long-term objective is to secure all of the benefits with an insurance company.
The challenge
To minimise their exposure to the risk of uncertain future insurer pricing, the Trustees have adopted a practice of insuring their pensioners in groups over time as they retire, and when they can afford to do so. Since their latest buy-in in 2012, there had been sufficient retirements to make another transaction worthwhile, with the additional incentive of attractive pricing in the market.
The solution
Working closely with the trustees, we ensured the transaction was completed smoothly, quickly and cost-effectively. The scheme has now insured almost its entire pensioner population, and pricing for the current transaction was so competitive that there was no impact on the overall funding level. In addition, by insuring the benefits of the youngest pensioners, the Trustees have materially reduced their longevity risk as well as the ongoing costs of managing the Scheme.
Read our case study or download our 2017 Risk Transfer Report here
The Trustees are delighted to have completed their fourth pensioner buy-in, taking another important step to materially reduce risk for the members of the Scheme. Hymans Robertson used their significant experience to expertly guide us through this latest buy-in, enabling us to insure the balance of our current pensioner liabilities at a particularly attractive price...
Alan Humphreys - Scheme Trustee
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