Press Releases

DB Pension Scheme Trustees and sponsors are concerned about additional cost and time pressures from compliance activity, for the DB Funding Code launching later this year, warns Hymans Robertson. The results of polling at a recent webinar, held by the leading pensions and financial services consultancy, found that nearly half of trustees and sponsors (42%) are concerned about the additional governance challenges, and in turn associated costs, that the Code will bring.

Hymans Robertson, the leading pensions and financial services consultancy, has appointed Louise Lane to join its expanding Risk Transfer team as a response to increasing client demand. Louise joins from Willis Tower Watson’s (WTW) Risk Transfer team, where she focused on assisting clients to reduce the risk associated with DB pension schemes, primarily through the purchase of bulk annuities. Louise has worked and advised on a variety of transactions, ranging in value from £100m to almost £2bn in size.

The Citrus Pension Plan, one of the UK’s leading DB Master Trusts, has confirmed they have completed a c£6.5m buy-in with Legal & General for the Amey Services Section of the plan.

The transaction, covering all of the liabilities that the Amey Section holds within the Citrus Pension Plan Master Trust, has been described as a great success, further increasing the security of member benefits. The process the Citrus Plan has developed for insuring different sections’ benefits and the efficiency and leverage they are able to apply as a Master Trust were particularly important in securing excellent terms for a relatively small UK DB section.

Up to £250bn of DC assets could be committed to private equity investments by the end of the decade, according to the latest analysis from Hymans Robertson, as it warns a shift in mindset is required to meet this goal. Its Illiquid Investment Embracing the Opportunities paper published today, finds that significant allocations to private equity have the potential to improve retirement outcomes for DC savers by well in excess of 10% based on a consensus view of returns. The leading pensions and financial services firm found there is scope to introduce material allocations to illiquids assets more generally and radically improve the retirement outcomes for millions of savers.

Commenting on today’s 0.5% interest rate rise from the Bank of England, Chris Arcari, Head of Capital Markets, Hymans Robertson says:

“UK interest-rate expectations have fallen from the levels touched in the wake of September’s ‘mini-budget’ and reflect a little more tightening by the Monetary Policy Committee (MPC). We expect the MPC to pause soon, but even though the UK faces the worst 2023 growth outlook among the major advanced economies, the committee is likely to be cautious about easing policy while the labour market remains tight...

Hymans Robertson is warning that schemes are sleep walking into a de facto buy-out because of a lack of endgame strategy. The results of polling at a recent firm webinar on how to avoid this risk, found that the majority of those surveyed (87.8%) do not have a fully planned end game strategy with clear structured timeframes in place, leading to decisions being made almost by default. Further indication for the need for better endgame understanding was highlighted by a second poll which found that only half of those surveyed (56.7%) would buy-out now if they could.

Commenting on DWP Consultation, “Extending Opportunities for Collective Defined Contribution Pension Schemes”, Kathryn Fleming, Partner, Hymans Robertson says:

“This consultation is another step along the journey towards equipping pension providers with the tools to allow them to design decumulation solutions that can meet the needs of future DC savers. CDC in decumulation might not be the right solution for all DC savers, recognising that retirement needs are very personal and multi-layered. But, it will offer the exciting prospect of a solution that bridges the gap between the complete flexibility and risk of drawdown and the certainty but irreversible option that is offered by annuities. It is right that the conversation takes place now as the scale required to deliver these solutions is fast approaching.”

Commenting on the DWP consultation ‘Addressing the Challenge of Deferred small pots’ Michael Ambery, Partner, Hymans Robertson says:

“We are pleased to see today’s DWP consultation as part of a much broader opportunity to encourage better outcomes, increase engagement and develop better understanding for individuals and their pension needs. As an industry the role of automatic consolidation is to be welcomed given the level of change and transformation of this issue. This consultation, working with the pensions industry, will determine the best way to further increase engagement and couldn’t be more timely or relevant. The erosion of small pots, the advent of the Pensions Dashboard and low member engagement will be woven together to ensure change from this consultation as part of a higher level action plan, further protecting members and small pensions pots from becoming worthless.”

Commenting on the DWP Consultation, “Value for Money: A framework on metrics, standards, and disclosures”, Laura Andrikopoulos, Head of Governance, Hymans Robertson, says:

“We are pleased to see today’s consultation from the DWP, and it is clear that feedback from the pensions industry surrounding value for money (VFM) has been listened to and included reflecting previous concerns. The commitment to change thinking from cost focus to long-term outcomes is much welcomed, however we would like to see this go further and for the metrics approach to include consideration of explicit outcomes metrics. The long-overdue approach for small schemes and residual members is a strong signal that pleas for greater pragmatism and proportionality have been heeded. The lack of focus on governance while disappointing is understandable, with a metric approach still favoured and the issue of quantifying remaining a complex challenge for many...

Commenting on the DWP’s Consultation Outcome on ‘Broadening the Investment Opportunities of DC Pension Schemes’ Callum Stewart, Head of DC Investment, Hymans Robertson, says:

“As commented consistently, we are supportive of the Government’s ongoing focus on facilitating investment from DC schemes in a wider universe of opportunities including illiquid assets. We are supportive of the requirement to require trustees to put in place formal policies on illiquid assets in their statements of investment principles and pleased to see this being prioritised with the requirement expected to come into force from the Spring...

Over £1million of grants to charitable causes has been distributed by The Hymans Robertson Foundation, representing a huge milestone since it was first established in 2016.

The Hymans Robertson Foundation is the principal means of charitable giving for the leading pensions and financial services consultancy, Hymans Robertson LLP. With a 10-year strategic ambition to distribute £2million through charitable giving by 2026, the Foundation has reached a significant milestone of £1 million distributed to its charity and community partners. The Foundation strives to make a difference to the lives of people and communities in the UK facing disadvantage, with particular focus on helping to secure better financial futures for disadvantaged young people by supporting the delivery of financial capability and employability skills training via strategic charity partnerships.

Commenting on the Work and Pension Committee Fourth Special Report “Protecting pension savers – five years on from the pension freedoms” Kathryn Fleming, Partner, Hymans Robertson said:

“The updated recommendations published today from the House of Commons Work and Pensions Committee feels like a fairly bleak response from the Government. It makes sense that the Committee has recommended that the first step in tackling the gender pensions gap is to agree a definition of what it is. However, it is disappointing that once again there is a notable absence of any timeframe from the Government to commit to reaching agreement on this definition. If this is the catalyst that will drive change, this omission supports the strong sense that this is being passed back to individuals, employers and the industry to deal with in the medium term...