Why You Should Run On 4 Good

​Why for Boards

• Make their Defined Benefit pension schemes assets that benefit the corporate financially and reputationally.

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• ​​Obtain major, agenda setting benefits from addressing directly trustee anxieties through arranging third-party, fixed sum guarantees.​​

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• ​Ask for asset managers to pitch a new long term, stable, investment strategy with growing productive asset allocations.

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• ​​​Have surpluses targeted to eliminate all pension costs including current DC pension expenses alongside improving current pensions.

“Boards have for too long let the pension industry dictate their agenda.  Explicable but unwise.  Now ask for the TAS300 V2 evidence of buyout v run-on.  The risk-benefit analysis is transformational.  C-Suite Analytics shows the diminishing downside v likely upside.  So drop the endgame: Run On 4 Good of all stakeholders.  Pensions: Reassess.”   

William McGrath (Founder C-Suite Pension Strategies)

​Why for Trustees​

​The story so far:

DB schemes prospered mightily up to the abolition of tax subsidies to hold UK equities in 1997. Actuaries neatly jumped from equity dividend yield led valuations into gilts plus a sliver liability calculations.  Then they ordered more investment derisking exercises and bond markets boomed.

2004 Pensions Act introduced TPR and PPF.  They have worked well.  Schemes are well funded and well governed.  PPF is quite small and very well funded.  It wants a widened role.

Corporate Boards saw DB schemes become only damage limitation exercises and wanted out.  Derisking of investments for endgame journey plans became standard. That let life insurers grab hold of schemes and make immense profits. TPR funding rules became more restrictive than PRA’s.
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Then leveraged LDI hit.  Bank of England was unamused.  Public policy changed.

Next steps:

TAS300V2 and DWPs Funding and Investment Strategy requirements allow for a clear headed policy reset.  What is the probability of more and less for members and sponsor in a comparison of run-on with buyout is a regulatory set ‘must’ requirement on actuaries.

With new information it is possible for trustees to go back to sponsors with proposals which improve member outcomes and set matters up better for the current generation of employees.  Tent folding endgames don’t make for the best journey plans. 

C-Suiteps Analytics helps with the strategy reset.  Partners provide advice; asset management and surety back-up.

All Stakeholders Benefit When You

​RUN ON 4 GOOD