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.