Press Releases

“We welcome this latest guidance from The Pensions Regulator (TPR) as a crucial milestone in the industry.

“To date, TPR’s interim guidance has not allowed providers to generate ongoing returns from successfully managing the risks within a superfund. This has effectively restricted commercial superfund models to temporary “bridge to insurance” models, as seen in the first two Clara transactions. Having closely scrutinised the Clara structure and those two transactions, this latest evolution in the guidance is less restrictive and signals that the superfund market is truly open for business and innovation...  

The importance of governance must be considered when DB schemes are looking to run on, with a view to generating and sharing material surplus, warns Hymans Robertson, as it releases its latest paper. Those considering run-on for their DB scheme, must look at how adopting this strategy would impact key stakeholders, and the consequences this would have on existing governance structures.

DB Schemes that choose to run-on need to clearly outline how funding and investment strategies align with the scheme objectives to avoid key challenges, says Hymans Robertson. The leading pensions and financial services consultancy releases its latest update to the Excellence in Endgame insights hub: ‘Investment Practicalities of Run-on’, today.

"We’re pleased by how quickly this review has been announced. More than 7 million people look to the LGPS to secure their futures in retirement. Over the last decade we have been looking closely at what it needs to evolve to better manage risks and meet the needs of those people. Part of our work has highlighted how significant savings could be made through delivering better value for money. Pooling is high on the agenda to help meet this end. Work has already begun on refining how funds should approach pooling and our recommendation is that it's a good thing, but care needs to be taken that funds are allowed to continue to take an approach that suits their needs...

“The silence on pensions review in the King’s speech was a worry. So, we’re relieved and excited to see Labour re-affirm the pension review, and at pace. The focus on investments is a sound place to start: the emphasis being doing more with what we have and where political capital can be built, not spent. This is about pace, momentum and confidence in areas that do not cost money. In practice, to support this the pensions industry needs a practical road map and attractive opportunities. As part of the review, once the Government has identified where investment is most needed, it must ensure this roadmap is clear and make it attractive to pensions. The pensions and financial services industries will then be able to support it and align this approach with their long-term goals...

Commenting on the inclusion of a Pensions Schemes Bill in today’s King’s Speech, Calum Cooper, Head of Pensions Policy Innovation, Hymans Robertson, says:

“We welcome the promise of a new pensions bill in today’s King’s Speech. The new government is clearly identifying the importance of pensions and the outcomes that will be vital for millions of savers. In its inclusion of measures around both small pots and value for money, it is good to see a continuation of some of the work already done. We hope it will utilise the collective industry wisdom that’s already been pooled through many pensions consultations over the last few years as it drives action forward...

Commenting on the Consumer Price Index June update, Chris Arcari, Head of Capital Markets, Hymans Robertson says:

“While UK headline CPI remains close to the Bank of England’s 2% target, this largely reflects declines in energy prices and their interaction with the Ofgem energy price cap. Core CPI (which strips out volatile components such as energy and food prices), has also eased, but at 3.5% year-on-year highlights some persistence in underlying inflation. This is further illustrated by services CPI, which though slowing, remains at 5.7% year-on-year...

The new pensions minister, Emma Reynolds, must address the key challenges of adequacy, sustainability and intergenerational fairness facing the industry and the millions of savers across the UK as a priority, says Hymans Robertson. The leading pensions and financial services consultancy also says, it would like to see the new government deliver on the key pensions’ initiatives that are underway as the firm lays out its pensions policy wish list.

With more small pension schemes able to afford to insure their benefits, insurers are increasingly looking at ways to increase their capacity to meet this rise in demand says Hymans Robertson.

Hymans Robertson, the leading pensions and financial services consultancy, has announced the appointment of Alec Day as Head of Private Sector Actuarial Services and Susan McIlvogue as Head of Large DB Scheme Solutions.

Without a clear end game approach, Trustees are unable to plan for the correct investment strategy warns Hymans Robertson, as the latest update to the Excellence in Endgame insights hub is released. Trustees must have a clear understanding of their end-game approach, prior to choosing an investment strategy, to ensure the level of returns, risk and timescales align.

Accounting issues may deter DB pension schemes from run-on and surplus sharing if a clear accounting framework is not considered by the sponsor, warns Hymans Robertson, as it releases its latest paper, Accounting implications of run-on and surplus sharing. With many DB schemes now facing improved funding levels, and the option of a run-on strategy becoming more of a reality for some, a clear accounting strategy must be thought through. Against the backdrop of a transforming political landscape with opportunities developing from the Mansion House reforms and potentially new legalisation post-election, care must be taken when agreeing an accounting framework.