Press Releases

New research from HSBC Tomorrow Master Trust shows workplace pension scheme members are losing around £1.7 billion a year during their transition into and in retirement, due to savers choosing costly pathways to access their money.

While some of this loss comes from scheme members withdrawing more than the 25% tax-free lump sum, exposing them to hefty tax penalties, many are potentially buying products that are not the optimal solution for their circumstances.

The research was commissioned for a report Converting pension pots into retirement incomes: Are current roads delivering member value? by HSBC Tomorrow Master Trust and undertaken by Professor Andrew Clare of Bayes Business School, in association with Hymans Robertson.

A UK pension scheme (“the Scheme”) sponsored by a Fortune 500 company has completed a £1bn longevity swap where PartnerRe acted as reinsurer. Zurich as insurer, acted as the intermediary to the swap. The transaction covering pensioner and non-pensioner members insures the majority of the risk that members live longer than expected and is a key milestone towards the trustees' plan to secure all benefits. This is among the first in an emerging trend of longevity swap transactions that has included non-pensioners.

Hymans Robertson were lead transaction adviser for the Scheme and Scheme Actuary with legal advice provided by Gowling WLG. Slaughter and May acted as legal advisers for Zurich.

Commentary on Chancellor Jeremy Hunt's Autumn Statement 2022.

Commenting on the need for net zero transition plans that focus on real world outcomes, Mhairi Gooch, Senior Responsible Investment Consultant and Net Zero Lead at Hymans Robertson, says:

“As we reflect on some of the outtakes from the first week of COP 27 it is clear, policy and action to tackle climate change remain vastly disconnected and this needs to change. For leaders in the global north to talk about ‘hope’ is surely an insult to the global south. Hope alone will do nothing and needs to be superseded by meaningful action. The transition to net zero can not be achieved by working in silos so all groups whose operations can or, do have a real world impact, need to develop clear understanding around how to properly invest in the transition to net zero....

Just Group is delighted to launch a new series of four videos to provide pension trustees and their administrators with a guide to the practicalities of the risk transfer transition process. These videos are designed to help them understand exactly what to expect after a bulk annuity contract is signed, before it can move into a ‘business as usual’ administration process and then ultimately buyout.

In the videos, James Mullins, Head of Risk Transfer at Hymans Robertson, interviews Just Group’s Relationship and Transition Senior Manager, Louise Ellisdon, about what it takes to transition a scheme through to ongoing administration and buyout, covering some key aspects of the data cleanse process.

Hymans Robertson, the leading pensions and financial services consultancy, has appointed former ACA Chairman, Patrick Bloomfield as Senior Actuary.

Patrick, joined Hymans Robertson in 2004 and has been a Partner since 2006 and an equity member since 2010. Having previously led the firm’s Trustee DB business, Patrick’s focus in recent years has been pension policy and providing strategic DB and DC advice to a range of industry leading schemes and employers.

Commenting on today’s 0.75% interest rate rise from the Bank of England, Elaine Torry, Co-Head of DB Investment:

“For pension schemes, an increase in short dated base rates in isolation should not be too much cause for concern. However, the rationale for the increase, coupled with other upcoming fiscal announcements could cause a ripple effect up the yield curve. If this happens, the rate rise could be a contributory factor to certain schemes being faced with fielding a further round of collateral calls, whilst others may find themselves in the position to be able to afford to de-risk and lock in funding level gains. However, the challenge that is overshadowing many schemes at the moment is the overarching balancing act that is having to be performed between managing risk and sticking to strategy versus the practicalities of raising cash to field collateral calls within the required timescales...

Comments from Hymans Robertson on Pensions Awareness Week 2022

Standard Life, part of Phoenix Group, has concluded a £200 million Bulk Purchase Annuity (“BPA”) transaction with the Agfa UK Group Pension Plan (“the Plan”). This BPA arrangement completed in September, covering the benefits of 770 members.

Commenting on the Bank of England gilt sale operation taking place today, Elaine Torry, Co-Head of DB investment says:

“Today’s planned sale of gilts from the Bank of England comes after a tumultuous period for UK financial markets, with numerous government changes and fiscal challenges being presented at rapid speed. It’s difficult to anticipate how the market will react to the Bank of England’s actions as the landscape of the field that investors, most notably UK defined benefit pension schemes, are operating in has changed quite dramatically since the original planned date for the sale...

Hymans Robertson, the leading pensions and financial services consultancy, has appointed Iain Church as Operations Lead for its Risk Transfer team. Iain will have operational responsibility for the team, which has grown to over 25 risk transfer specialists, taking ownership of everything from resourcing client projects through to knowledge sharing and people development.

Advisers’ ability to fully comply with Consumer Duty is in jeopardy if their investment providers don’t provide them with regular transparent updates or operate with the rigour needed to meet the new requirements, warns Hymans Robertson Investment Services (HRIS), as the first deadline of the new guidance nears.