Managing sustainable pension schemes with expert consulting
Navigating volatile markets, changing funding positions and conflicting views on investments can make planning for future pensions provisions uncertain and risky. As one of the UK’s leading advisers on pensions, we help you navigate these challenges, devising a long-term strategy with pension scheme trustees and the sponsoring employer.
From investment consulting to de-risking exercises, we pull together experienced actuarial and investment consultants for your business. We take an active role in decision-making, provide cutting-edge analytical tools, and give you access to the full range of investment solutions.
We understand that pension scheme trustees and sponsors often have different views on how pensions should be invested and funded which is why our consultants advise both trustees and scheme sponsors, bringing people together towards a shared goal.
of people have no idea how much they have in their pensions pot
of people say they don’t understand enough about their pension to make considered changes
of employees want coaching on all aspects of retirement
Compass Winter 2020 / 21
In our quarterly publication of Compass, we provide commentary and analysis of recent legislative and regulatory developments affecting pensions and employee benefits.
This edition of Compass opens with a focus on the perennially hot topic of Guaranteed Minimum Pension (GMP) equalisation, considering the significant ruling in the Lloyds Bank case regarding past transfers that included GMP. The court ruled that schemes have a duty to ensure that they have paid the correct transfer values historically, which may compel them to make top-up payments in respect of transfers as far back as 1990.
A joined-up approach to actuarial advice
We create tailored, sustainable and pragmatic solutions that let pension scheme trustees and CFOs mitigate risks and plan the future direction of their defined benefit (DB) pension schemes.
Scheme trustees and sponsoring employers often have different objectives. We help both parties work together in a collaborative approach. And we collaborate internally too. Our actuarial consultants work closely with our pension administration and technology specialists so that our clients get more joined-up, efficient and cost-effective advice.
Journey planning and long-term pensions strategy
When your governance costs are disproportionately high or a governance burden is looming, it can make sense to have your scheme’s assets and liabilities bought by an insurer, so that you can wind it up and reduce your risks.
Our strong reputation, flexible approach and high completion rate – combined with our pensions management expertise and analytics software – mean that we can support you all the way from journey planning to post-transaction, helping you to get your scheme ready for buy-out, identifying the best time to sell, and successfully completing the transaction with an insurer.
De-risking and liability management-advice
The long-term goals of your pension arrangements will dictate almost every scheme decision you need to make with your scheme. We create bespoke strategies for schemes of all sizes that acknowledge their unique differences. We deliver with the right advice and guidance to trustees and scheme sponsors at every step of the way.
GMP equalisation and conversion exercises
The Guaranteed Minimum Pension (GMP) has continued to add complexity to those involved in pensions. The 2018 Lloyds judgement on GMP equalisation confirmed that how you do this still remains a decision for individual schemes. We have helped over 100 schemes to work through GMP exercises.
Integrated risk management services
We understand two of your biggest challenges are defining timescales and controlling costs over the long term. Our pragmatic approach ensures that costs are fixed, and realistic timescales are set from the start. With us, you will have access to the tools you need to manage risk, reduce funding volatility, and safeguard your members’ benefits in a way that you can understand and afford.
Tracking of funding position or balancing risk and reward in investment strategy
We develop investment strategies that work in tandem with your funding strategy to deliver your long-term objectives and comply with the pensions regulator’s integrated risk management framework.
Our investment consultants work with you, side-by-side, to ensure your scheme has the right balance of risks and costs for all stakeholders, and that the investment strategy supports the funding strategy and long-term objectives.
We offer a joined-up approach across our actuarial and investment teams who use the same pension analytics platform (PFaroe) to deliver dynamic monitoring and ongoing review in the following areas:
- Integrated funding and risk management
- Investment strategy review
- Manager selection
- Review of performance by asset-class
- SIP review
- Daily monitoring with triggers
- Environmental, social & governance (ESG) policy review
- Investment governance
- Regular cashflow advice
- Financial reporting
Capita brings a wealth of experience. When I meet people from Capita for the first time, it’s always ‘I’ve worked in the industry for a number of years'...
Tim Goodchild, International Benefits Management at Verizon Media