Our experienced team can help design tailored solutions to deal with scheme deficits. These solutions may involve increased funding and/or benefit redesign not to mention the use of contingent assets.
Other situations which may require an independent perspective are:
- Any proposals to move from defined benefit to a hybrid scheme and/or a defined contribution scheme
- Any proposal to reduce benefits or to increase member contributions
- The terms, contribution levels and investment options of many defined contribution schemes may not have been reviewed for many years
- Defined benefit scheme wind-ups
Traditionally funding deficits was seen to be the Employer’s problem. Now everybody shares in the problem because many companies simply can’t afford to fund current deficits without considering changes to future service benefits, not to mention the once sacrosanct accrued rights. Even pensions in payment are coming under threat with the proposed wind up priority rule changes.
The need for plan reviews and indeed restructuring was never more evident.
Our team can assist employer, trustees, unions and member representative bodies to work towards a shared understanding of the issues in the first instance and to move forward to develop a solution which endeavours to address the balance of interests between all stakeholders. Any solution has to be tailored for the specific circumstances of the case in question. Inevitably there is a trade off between funding, stakeholder risk and benefit changes.
Liaising, educating and communicating with all stakeholders along the journey are key elements in achieving a mutually acceptable solution.
With our wealth of experience we are uniquely positioned to carry out any of the above exercises.
If you would like discuss how we can help, please contact John Byrne.
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