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A new guide
has been published by Hewitt Associates to help companies work through
whether a buy-out is the right option for them, The Elements
of an Effective Buy-Out.
The guide also features practical help on managing their way through
the process of transferring their pension liabilities, should they
choose to do so. It is based on Hewitt research and experience by
the company, which has over £1bn of transactions completed,
and quotations currently underway which are potentially worth £7bn.
The company has published the guide following major changes in the
bulk annuity market, which has seen new organisations offering new
solutions for taking on pension liabilities from the schemes of
solvent employers. The wealth of new options available to trustees
and sponsors for pension risk transfer presents new challenges and
pitfalls, said Hewitt, unless the optimum process is followed.
Kevin Wesbroom, UK lead of global risk services at Hewitt, commented:
“Pension schemes have entered unchartered territory in recent
times, so the intention with this new guide is to provide a framework
which can help trustees and sponsors to consider which pension risk
management options are right for them. One thing is crystal clear
– companies need to be certain of their ultimate objectives
before setting out on this process.”
The guide features key issues that need to be addressed throughout
the process including assessing price quotations, data cleansing,
necessary precautions and reviewing liabilities.
- Pensions Age
July 2008
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