C-SUITE PENSION STRATEGIES
  • Home
  • Run On 4 Good
    • Run On 4 Good Pension Funding Strategy For 2025
    • TAS300 V2 trigger for rethink
    • Why You Should Run On 4 Good
    • Surpluses collapse the case for bulk transfers
    • Equity Investor Perspective
    • C-Suite Webinar
    • Members Letters and Questions
  • C-Suiteps Analytics
  • Commentary
  • FD Carol critiques risk transfers
  • Financial Services Growth and Competitiveness Strategy Call for Evidence response
  • DWP consultation response
  • Buy-ins Longevity swaps and other unforced errors
  • The unsustainable esg pensions carve out
  • Case Studies
  • The Team
  • Partnerships
  • Contact

How can Parents Impact on Pension Cash Funding?

6/9/2017

 
When it comes to parental back-up, how do actuaries factor it into their numbers?  Now, under new disclosure rules, actuaries have to explain what they’ve done to take into account the value of the sponsor’s covenant.  So, what if you change it?

There is a great opportunity for UK companies with strong overseas parents to seek a recount.  Where the parent is not a participating employer:
  • What change comes to the length of the recovery plan or the investment returns expected should the parent now guarantee payments?
  • What for limited or total parent guarantees pension funding requirements?
  • What about bank or insurance guarantees organised by the parent to cover various contingent short-falls?

As time goes by and pensions become more of an historical factor that requires ever larger cash contributions, the time is right for a new look.  C-Suite Pension Strategies has the heavy-hitting resource of executives with corporate and pensions knowledge able to question whether the standard actuarial thinking is relevant.  Parents keeping their distance from adult children may usually be a good thing, but not corporately when subsidiaries end up paying away large sums quite unnecessarily to reach objectives which are not in the wider family’s interests.

“The financial support – both actual and possible – of parents for subsidiaries with pension obligations is often underestimated in covenant assessments.  It is in everybody’s interest for that to change and new actuarial disclosure rules can be the trigger.  Pension payment guarantees from the investment bank of mum and dad.”  William McGrath, Founder C-Suite Pension Strategies
Picture

Comments are closed.

    RSS Feed

    Archives

    April 2025
    February 2025
    January 2025
    December 2024
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    June 2024
    May 2024
    April 2024
    March 2024
    February 2024
    December 2023
    November 2023
    October 2023
    September 2023
    August 2023
    July 2023
    March 2023
    February 2023
    January 2023
    October 2022
    September 2022
    July 2022
    June 2022
    March 2022
    February 2022
    October 2021
    September 2021
    March 2021
    January 2021
    August 2020
    April 2020
    March 2020
    September 2019
    June 2019
    March 2019
    January 2019
    November 2018
    September 2018
    August 2018
    July 2018
    May 2018
    April 2018
    January 2018
    November 2017
    September 2017
    August 2017
    July 2017

Privacy Notice
C-Suite Pension Strategies Ltd
​Registered in England and Wales
Company No. 09974973
  • Home
  • Run On 4 Good
    • Run On 4 Good Pension Funding Strategy For 2025
    • TAS300 V2 trigger for rethink
    • Why You Should Run On 4 Good
    • Surpluses collapse the case for bulk transfers
    • Equity Investor Perspective
    • C-Suite Webinar
    • Members Letters and Questions
  • C-Suiteps Analytics
  • Commentary
  • FD Carol critiques risk transfers
  • Financial Services Growth and Competitiveness Strategy Call for Evidence response
  • DWP consultation response
  • Buy-ins Longevity swaps and other unforced errors
  • The unsustainable esg pensions carve out
  • Case Studies
  • The Team
  • Partnerships
  • Contact