Pension Funding: A Straight-forward Deliverable Solution for all Stakeholders

Logic

• Government and its Regulators now require pension schemes to accelerate deficit elimination and to plan for financial self-sufficiency.
• Strong sponsors can commit to third-party insurance to cover the difference between assets held today and self-sufficiency value of the liabilities.
• Hence trustees and sponsor can agree to an investment strategy which assumes investment returns and discount rates used do not fall away so sharply.
• Delivers self-sufficiency without adding to cash requirements from the sponsor.

Action
C-Suite Pension Strategies links sponsors with:

• Insurance brokers to confirm availability of insurance
• Fiduciary managers and leading actuarial consultants on the appropriate investment strategy
• Actuaries to provide prudence and regulatory appraisals

Advantages

• All stakeholders are better off
• The Board has “done the right thing” and addressed pension risk for members and the Regulators.
• Derisking has limitations.  The law of diminishing returns sets in.  The company can ensure a better solution.

Impact
Illustrative numbers show immediate cash benefits:

The investors; the Board; the pension scheme members and the trustees have clarity about the plan and can see it working for all parties.