Press Releases

Commenting on the DWP Options for DB Schemes Consultation’s proposals and questions around sharing DB surplus, Calum Cooper, Head of Pension Policy Innovation, Hymans Robertson, says: 

“The spirit and intent of this consultation - to make it easier to share surplus for the benefit not only of members, but of all DB stakeholders - is welcome. This is a once in a generation opportunity for DB schemes to make decisions that will have a material impact on both stakeholders and members. It will also have an impact on the direction of pensions in the UK for many years to come. The swift rise of scheme surpluses and proven alternative endgames have transformed defined benefit security, and more schemes will run on if they could share surplus more easily. However, it is important that schemes are encouraged and enabled to manage surpluses with long-term sustainability in mind. There must be mutual consent between trustees and sponsors to enable a carefully managed surplus to create value responsibly and sustainably for both parties...

Commenting ahead of tomorrow’s ONS CPI figures, Chris Arcari, Head of Capital Markets, Hymans Robertson, said:

“UK headline CPI inflation is expected to have declined to 3.1% year-on-year in March. Indeed, falling energy prices and the impact of the UK’s energy price cap means headline CPI inflation is expected to fall below target in the coming months, but sticky services and wage inflation still highlight elevated underlying price pressures.

Commenting in response to TPR’s statement of strategy consultation, Laura McLaren, Head of DB Actuarial Consulting, Hymans Robertson, said:

“We’re glad to see TPR publish detailed guidance for the statement of strategy, but we’re concerned that completing the template as proposed will create a lot of extra work. We estimate a typical scheme could add 20% to its valuation costs as a result...

Hymans Robertson has launched a new ‘Excellence in Endgames’ insights hub to help DB pension scheme trustees and sponsors find their way through the maze of emerging endgame options.

The newly launched hub includes a decision-making tree to help identify the optimal Plan A endgame in this new environment. It highlights that while buy-out will remain a Plan A for many DB schemes, for others alternatives such as managed run-off, alternative risk transfer and superfunds will be their Plan A.

The leading pensions and financial services consultancy also suggests that, while many schemes may have a Plan A in place for the endgame, few have a dynamic endgames strategy which considers an actionable Plan B. The decision-making tree is designed to cut through complexity, identify the right endgames strategy for a scheme, and help develop and execute a plan that puts member outcomes at its heart. 

Commenting on the abolition of the Lifetime Allowance (LTA), Susan Waites, Partner, Hymans Robertson, said:

“Employers and Trustees should review the position of any employees or members expecting to retire in the next few weeks and offer support where necessary. This support is particularly important for those impacted by HMRC’s last-minute advice that some members should delay payment of certain benefits because of errors in the legislation.  

Hymans Robertson has been the lead adviser on the De Beers UK Pension scheme £870m buy-in with Pension Insurance Corporation plc (‘PIC’).  The transaction secures the pensions of over 1,900 deferred and pensioner members of the Scheme.

Commenting on the FCA’s consultation on the pensions dashboard service, Paul Waters, Head of DC Markets, Hymans Robertson, said:

“Pension dashboards are long overdue and a means to helping millions of people get a better picture of their retirement savings. To deliver the best customer outcomes we need to answer the ‘So what?’ for people when they see their data. The industry has all the tools to do this and create simple and compelling onward customer journeys to inform and guide people. We risk losing the benefit of this from an overly prescriptive and restrictive approach to managing customers through the dashboard journey and post view services. The Consumer Duty framework already protects customers and should be enforced robustly. Providers must be able to deliver the most comprehensive customer engagement and support model for dashboard customers if we are to leverage the full value from dashboards and help address the DC adequacy challenge.”

Commenting on the TPR’s General Code which has come into effect, Laura Andrikopoulos, Head of Governance Consulting, Hymans Robertson, said:

“We are pleased to see the General Code finally over the line. The response from Trustees so far has been good, with plans for full compliance well advanced. The task for Trustees over the next few months will be filling any remaining ESOG gaps and commencing their ORA planning. As part of the ORA, Trustees will need to evaluate the effectiveness of their governance. This is a helpful prompt to reflecting on key decisions taken, in addition to a more technical approach to testing policies and processes.”

Reflecting current views on future improvements in life expectancy could save Corporate Sponsors millions with their DB Pension Schemes, analysis by Hymans Robertson has found. The leading pensions and financial services consultancy says that updating the longevity assumptions to one of the more recent CMI models could see a significant improvement in a scheme’s funding position of nearly 3% of liabilities. Many schemes’ last review of their longevity assumptions will have been done before the many demographic changes of the last three years.

Hymans Robertson, the leading independent pensions and financial services consultancy is pleased to announce 12 senior promotions in the firm – a new equity member and 11 partners.