Press Releases

DB schemes will lack the information they’ll need to understand how nature and climate related risks affect them without an integrated approach to sustainability reporting, warns Hymans Robertson, as it launches its briefing note on Taskforce on Nature-related Financial Disclosures. Delivering real-world change will rely on pension schemes and other institutional investors taking a holistic approach to sustainability disclosures, given that the climate and biodiversity crises are interrelated, says the leading pensions and financial services consultancy. The briefing note aims help DB schemes understand how the TNFD framework works and the key actions asset owners should take now to ensure successful TNFD reporting.

Corporate sole trusteeship of DB schemes has grown by 12% in the year to March 2023, reveals analysis from Hymans Robertson’s annual report on the sector: The future of corporate sole trusteeship. The report explains that the reasons for the continued growth include cost, a decline in member-nominated trustees and a reduction in company management time. Also at play is the search for efficient governance and decision-making, and increasing professionalism of trustee boards, as well as changes in risk profile or scheme funding progress. However, it warns that issues recruiting trustees with the right backgrounds and the demands of highly efficient service delivery could challenge the sole trusteeship model.

Employers could increase the value that DC pensions members are gaining from their schemes by simply reviewing the arrangement with their pension provider, according to analysis from Hymans Robertson. Its analysis has shown that a review by employers could increase member pots at retirement in the future by as much as 15%. Pensions are a key core benefit to employee retainment, yet with the current high inflationary environment it is becoming difficult to increase pension contribution spend. So it’s important for employers to take a look at their DC pension arrangements to ensure they are getting maximum value for scheme members. The leading financial services and pensions consultancy says that now is an ideal time for that review, in an era where providers are looking to retain and win work.

The Andrews Sykes Group Pension Scheme has insured the benefits of its defined benefit pension scheme with Canada Life in a transaction of £30m, following a competitive tender process. This is the third deferred member transaction that Canada Life has completed.

The transaction secures the benefits of around 440 members, including over 160 deferred members.

Hymans Robertson was the lead transaction adviser, with legal advice provided to the Scheme by Neon Legal.

Commenting on the Solvency II consultation published by the PRA today, Michael Abramson, Partner and Risk Transfer Specialist, Hymans Robertson, said:

"The Government has previously made much of Solvency UK giving more flexibility to invest in long-term productive assets like infrastructure. Today’s PRA consultation puts meat on the bones of this flexibility, although insurers may feel that the meat is rather lean...

We are desperately sad to announce the unexpected death of our beloved colleague, Equity Member and Senior Actuary, Patrick Bloomfield.

Ahead of the Local Government Pension Scheme (England and Wales): Next steps on investments consultation closing, Hymans Robertson warns that the consultation’s implication that there’s a single approach to pooling represents a risk to funds. In reality, funds can currently access a variety of approaches. These provide a range of benefits in areas such as governance and value for money. The leading pensions and financial services consultancy argued that if a single approach is taken, it could lead funds to experience a number of issues around risk, performance and the inability to address their individual needs.

Buy-in and buy-out volumes in the first half of 2023 reached an all-time high, with the value of transactions secured being the second highest ever recorded for a six month period, says Hymans Robertson. The leading pensions and financial services consultancy has analysed results from all eight insurers* currently active in the market.

Commenting on the Pensions (Extension of Automatic Enrolment) Act 2023, Hannah English, Head of DC Corporate Consulting, Hymans Robertson, said:

"The cross-party consensus for extending automatic enrolment is very heartening. With increasing numbers of individuals now being encouraged through AE to contribute to a pension, it will mean that more people are beginning to save for their retirement from a younger age and increase their chances of better financial outcomes. The removal of the lower earnings limit would also bring significantly more people into AE...

Commenting on the expected Bank of England interest rate rise, Chris Arcari, Head of Capital Markets, Hymans Robertson, said:

“Despite Bank of England Governor Andrew Bailey’s recent comments that further interest rate rises may not be required, markets fully expect the Bank of England to raise the bank rate from 5.25% p.a. to 5.5% p.a. at the September Monetary Policy Committee meeting and are split on whether interest rates are raised again, to a peak of 5.75% p.a., in this rate-hike cycle in early 2024 (i.e. are expecting one further 0.25% p.a. increase after the September meeting)...

Commenting on reports that the Government may be considering tweaking the state pension triple lock, Paul Waters, Partner, Hymans Robertson, said:

“Now is not the time to tweak the triple lock. Pensioners, particularly those on low incomes, will need the increased income that the triple lock will provide right now, especially to deal with the high cost of living increases. The state pension is already relatively low when measured against recommended UK minimum living standards and many European countries...

As the industry awaits TPR’s final DB funding code, Hymans Robertson has launched eight case studies looking at what these reforms could mean for UK DB pension schemes and their sponsors. TPR and DWP are still to resolve inconsistencies between the code and the regulations that will underpin it, and the industry awaits detailed guidance in several areas, such as the calculation of maturity and the format of the statement of strategy.