Hymans Robertson launches new run-on service for DB Schemes

A new service to help DB pension schemes navigate growing complex decisions around run-on has been launched by Hymans Robertson. Horizon, the new service from the leading pensions and financial services consultancy, helps trustees and sponsors assess whether run-on is a viable and worthwhile option for their scheme as it approaches endgame. 

Where run-on is the right choice, the service provides tailored advice, modelling, support and structure to help design and deliver a run-on strategy that ensures member experience and outcomes are paramount. 

Horizon meets the growing requirement from schemes for a combination of high-quality analysis and practical guidance as they approach endgame decisions. The service’s modelling supports decision-making on factors such as timescales, desire for flexibility and appetite for risk and growth. It explores how the value of members’ and sponsors’ outcomes can change under different strategies and surplus sharing approaches. 

Supporting robust collaboration with all stakeholders, Horizon can help schemes evaluate and prioritise risks and benefits. As schemes approach their endgame, Horizon enables trustees and sponsors to answer the key questions: “Could we run on?” and “How can we optimise the detail?”

Commenting on the launch of the new service, Laura McLaren, Head of DB Scheme Actuarial Services, Hymans Robertson, said:

“As funding levels and objectives shift, the endgame landscape is changing rapidly. DB schemes are faced with endgame planning where choices are far more complex than just a ‘run-on or buy-out’ discussion. Run-on can unlock real-world benefit and improve member outcomes, but trustees and sponsors need support to understand the detail and ensure that it’s consistent with long-term objectives. Purposefully choosing to run on will be much more effective than ‘drifting’ into it.

“Horizon has been created to help schemes agree a clear way forward. It offers clarity, confidence and structure to decide whether run-on is right before a scheme commits further. This avoids wasted effort and cost. Bringing together insight, modelling and experience so schemes understand how deciding to run-on could unlock value for members and the sponsor. It reflects the shift we’re seeing from schemes of all sizes that want a deeper understanding of their options. Especially how the impact on members – value, outcomes and experience – compares.

“The service tests the economics of running on, explores the potential value and risk, and how outcomes may differ under a range of approaches. Once there’s agreement in principle, it helps to design and optimise a strategy that works for everyone with clear governance to support effective implementation.

“What we’ve heard from trustees and sponsors is that they want clear analysis and thoughtful practical guidance. Horizon has been built with those expectations in mind. It encourages collaboration and informed discussions, giving schemes the clear vision they need at every stage of a run-on journey.”

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