As more Defined Benefit schemes secure benefits with insurers, trustees and sponsors are now starting the scheme buy-out and wind-up process. Many schemes have completed full-scheme buy-ins faster than expected, thanks to improved funding and favourable insurer pricing. However, this quick progress means essential work for buy-out and wind-up might not be underway. If this work is delayed until all benefits are insured, it could prolong the wind-up and increase costs, potentially reducing any surplus for members or sponsors.

While focusing on buy-ins, trustees might overlook the entire process from buy-in to wind-up. They may be unsure how long it will take or how to speed up the process and manage risks effectively.

In this report, we consider three main areas:

• How long can it take to wind up; 
• What could cause delays; and
• How can schemes reduce the risk of delays.

DOWNLOAD OUR PUBLICATION

If you’d like to discuss your scheme’s approach to the risk transfer market, please get in touch.

This communication has been compiled by Hymans Robertson LLP® (HR) as a general information summary and is based on its understanding of events as at the date of publication, which may be subject to change. It is not to be relied upon for investment or financial decisions and is not a substitute for professional advice (including for legal, investment or tax advice) on specific circumstances. HR accepts no liability for errors or omissions or reliance on any statement or opinion. Where we have relied upon data provided by third parties, reasonable care has been taken to assess its accuracy however we provide no guarantee and accept no liability in respect of any errors made by any third party.