There are multiple endgame pathways for trustees and sponsors to consider.
Improvements in funding, new avenues for surplus access, and advancements in regulatory governance are reshaping the DB landscape.
Buy-out is no longer the sole pathway to wind-up. We now see a competitive market, which has transformed the options for managing and ultimately winding down defined benefit pension schemes.
For trustees, sponsors and corporate finance professionals, these developments open the door to customised endgame strategies that align with the unique needs of each scheme.
Fundamentally there are four main categories of endgame:
However, endgame is not linear, and each pension scheme will require their unique roadmap fit for purpose and robustly managed.
An endgame strategy may even move from one solution to another as your scheme matures, evolves and risk-profiles, as well as economies of scale, change.
Our endgame tool ranks each category based on the unique circumstances of your scheme.
Do you continue to follow the best endgame strategy for your scheme and its members? The only way to find out is by an extensive review of your scheme, its maturity, security and operational strength.
Take some time to complete our endgame tool. The unique design and position of your scheme will determine the endgame options we recommend you pursue or avoid.
Get your endgame indications report today.
It is important to identify how your endgame strategy could be altered. Even if your funding position and employer covenant remain stable, external factors may have an impact.
