Defined benefit consolidation
Consolidation is widely supported by both the industry and government and is an important step towards improving member outcomes.
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Why Hymans?
Consolidation provides the scale needed to efficiently manage liabilities and deploy assets. We can guide you through the available options and help decide what’s best for your scheme, whether that’s transferring liabilities into a master trust or transferring to a superfund.
How we help
We understand consolidation has many potential benefits for members and sponsors. It offers opportunities that can make a real difference for many schemes.
Pooling resources gives smaller schemes access to economies of scale and other advantages that may otherwise be out of reach, including reduced costs and improved governance. Consolidation also offers greater flexibility in managing liabilities and risks, helping schemes secure stronger futures.
Superfund transfers are an innovative way to consolidate assets and liabilities, with the option to either keep or break the sponsor link, depending on the scheme’s needs.
With growing political support (and forthcoming specialist legislation in the next Pension Schemes Bill), superfunds will play a crucial role in the future of defined benefit (DB) pensions. They have the potential to deliver immediate improvements for members through greater efficiency and scale.
Master trusts are a valuable consolidation route, especially for smaller schemes.
Through the scale of a DB master trust, schemes achieve cost efficiencies and better service, improving outcomes for members and trustees. As an alternative governance model, master trusts also offer a structured journey towards an endgame, with lower costs and the ability to accelerate plans.
Consolidation makes sense for many objectives:
- Risk transfer destination - With a lower cost than insurance, superfunds offer an alternative for schemes to settle benefits either earlier or at a higher level, compared to traditional insurance.
- Journey planning - Solutions like Clara serve as a bridge to insurance, providing an alternative strategy to schemes managing risks towards their endgame. Master trusts offer a governance framework that can lower costs, so schemes can accelerate to a secure endgame.
- Efficient run-on option - For smaller schemes, a DB master trust can be a cost-effective home for running-on, with members still benefiting from a full range of endgame solutions, regardless of scheme size.
Recent highlights
Success
We’re the only firm to successfully support a superfund through the Pension Regulator’s assessment process.
Innovation
We advised on the groundbreaking Debenhams transaction with Clara.
Superfund experience
We act as scheme actuary to the trustee of a superfund.
DB Master Trust experience
We act as scheme actuary to a DB master trust.
Case Study: Debenhams Pension Scheme
Debenhams pension scheme transfers to Clara in a groundbreaking transaction.
Opens in new window Download case studyOur services
Because we work with a wide range of providers, we can offer in-depth insights across the entire consolidation market.
Education
We offer comprehensive education and training on the options available for your scheme
Tailored analysis
Tailored analysis helps find the right consolidation solution, whether that’s a DB master trust or a superfund
Expert guidance
Our expert guidance on selection and transition means you have a smooth move into your chosen consolidation route
Hymans Robertson… demonstrated a clear detailed understanding of this market and expertly guided all stakeholders through this journey towards an efficient transaction.
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