Buy-out and wind-up transition services
For many defined benefit pension schemes, the end of the journey is in sight. The next milestone is to secure member benefits and wind-up the scheme. In this complex, often unfamiliar, territory we’re here to help.
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Why Hymans?
Winding up a defined benefit (DB) scheme involves many stakeholders, each with their own priorities. Our experienced wind-up specialists will guide you through every step of the transition. They’ll co-ordinate the wider expertise of our team so you get the dedicated support you need at every stage.
Why our approach works
Better outcomes
We give your wind-up the time and attention it needs, helping manage risks and control costs to create a win-win for everyone.
A human touch
We keep you informed at every stage, with efficient, effective support for everyone, including your members.
Greater confidence
Our expert knowledge and experience will help you navigate this complex transition. You can feel confident that members will receive the correct benefits at the right time.
The wind-up journey
- Establish governance and project oversight from the start. Engage stakeholders and set-up and maintain the trustee dashboard and project plan.
- Clarify the balance of powers and surplus plans.
- Cleanse data: review existing data, complete guaranteed minimum pension reconciliation and equalisation.
- Conduct a surplus/deficit assessment and monitor throughout the project.
- Plan member communications early, agreeing a strategy.
- Consider member options: think about offering choices such as transfers or winding lump sums.
- Secure benefits: select an insurer, transfer assets and complete the buy-out smoothly at the best price.
- Complete the wind-up by triggering wind-up, informing stakeholders, finalising accounts and issuing statutory notices.
- Start early, ideally developing your wind-up plan one year before the final buy-in transaction.
- Assess data and benefits. Identify completed tasks, remaining work and potential residual risks.
- Remember the details and address items like additional voluntary contributions or historic individual annuities.
- Establish governance, clarify decision-making processes and reporting structures, define roles and responsibilities.
Risk Transfer Spotlight
This edition of Risk Transfer Spotlight explains how to smooth the journey from buy-in to wind-up.
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The contribution from Christine Cumming over the time she has taken the ‘driving seat’ has been absolutely outstanding. The attention to detail, pragmatism and management of issues, with the various disparate stakeholders, surrounding the complexities of the scheme, has been most impressive.
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