Plan to insure liabilities
For some schemes, purchasing annuities over a short time horizon may be feasible. Where this is not possible, schemes can develop a long-term staged plan for transferring pension liabilities to the insurance market in a cost-effective way that takes advantage of market opportunities as they arise.
Please click on each stage to find out more about what is involved at each phase.
- Identify insurance solutions that could be used to better manage risk within funding and cost constraints.
- Consider the key issues, likely costs and potential hurdles, including data issues.
- Determine transaction criteria and the likelihood that these will be met, including selection criteria for insurer comparison.
- Put in place arrangements to monitor buy-out/buy-in funding position
- Determine mechanisms to monitor pricing and other key market factors
- Prepare necessary information and formulate quotation request
- Take advice on which providers to approach
- Analyse and compare the insurer responses
- Take advice on the financial strength of the insurers and carry out anyfurther analysis necessary
- Agree terms with the provider that ensures that the contract removes intended risk
- Put in place interim arrangements to lock into pricing
- Reposition assets for transition to insurer
- Address any final data issues
- Manage implementation with the various parties