Press Releases

Nearly half of all DB pension schemes (45%) submitting valuations in 2021 lengthened their recovery plan end date, compared to just over a third (35%) the year before, according to the latest benchmarking analysis from Hymans Robertson. The first report on valuations post Covid-19, found that while markets recovered quickly from the initial shock of the pandemic, challenges remained.

Research undertaken by the leading pensions and financial services consultancy also reveals that the average recovery plan length has increased to 6.4 years from 5.9 years in 2021. Nevertheless, the recent rises in gilt yields are likely to have brought some good news for schemes with less hedging in place.

Hymans Robertson is pleased to have been listed as a signatory to the UK Stewardship Code for a second year. The acceptance of the leading pensions and financial services firm onto the list marks its continued commitment to advancing the importance of stewardship on client agendas, along with their stewardship capabilities.

LGPS funds should expect to see positive improvements in funding level at the 2022 valuation, reveals Hymans Robertson, as it publishes analysis to help LGPS funds better understand their 2022 valuation results. Following a review of whole fund results, the analysis from the leading pensions and financial services consultancy, outlines the common trends which are emerging, while considering the current economic challenges in relation to inflation.

Commenting on the Local Government Pension Scheme (England and Wales) consultation: ‘Governance and reporting of climate change risks’, Philip Pearson, Head of LGPS Investment said:

“We welcome the publication of DLUHC’s consultation on the governance and reporting of climate change risks for LGPS Funds in England & Wales. This provides clear direction for Funds on the steps they will need to take to further develop their approach to addressing and reporting on climate change risks..." 

Private Markets managers are failing to provide their clients with the information they need to effectively manage climate risks, according to recent research by Hymans Robertson. The leading pensions and financial services consultancy warns that this lack of data has significant implications for both DB and DC pensions schemes’ ability to meet their governance and reporting obligations under TCFD.

Commenting on today’s ONS Consumer Price Index Inflation, David Walker, Chief Investment Officer, Hymans Robertson says:

“The update from the ONS today follows on from the Bank of England announcement earlier this month and reiterates that this is a period of rapid change for pension funds and their investments. One of the most significant impacts has been how inflation levels have fed through to interest rate rises and expectations around future rate rises, with some significant shifts in bond yields in recent weeks. The rise in longer term gilt yields, which we have seen over the course of 2022, will continue to have a significant impact on pensions schemes, leading to a worrying time for pensioners. Against a backdrop of inflation, and a soaring cost of living crisis looming, an improvement in funding could become less positive as rates continue to rise. We would urge Trustees to review the resilience of their strategies to these interest rate and inflation moves and in particular consider how inflation may feed through to day to day net cashflow requirements..."

DB Trustees and Scheme Managers must begin to take action now to ensure the eventual move to pensions dashboards is as straightforward as possible, warns Hymans Robertson, as it launches a new guide to help them navigate their way through this new landscape. The new guide from the leading pensions and financial services consultancy, Pension Dashboards are Coming, outlines the simple actions Trustees can take to prepare for the dashboard, and the steps required to manage the transition.

Commenting on the consultation ‘Public Sector Exit Payments: a new controls process for high exit payments’, Ian Colvin, Head of LGPS Benefit Consulting, Hymans Robertson says:

“Today’s newly announced consultation takes a slightly different approach from previous government intentions to cap exit payment at £95,000. Rather than apply an absolute cap to exit payments, the proposal seeks to beef up the approval process and to give the relevant department secretary of state the final say on whether a £95,000 plus payment can be made. The expectation is that approval will only be granted in exceptional circumstances..."

Commenting on today’s interest rate rise from the Bank of England, Ben Farmer, Senior Investment Consultant, Hymans Robertson says:

“The prevailing high inflation environment continues to impact institutional investors and their portfolios. Despite more recent falls, long-term bond yields have risen significantly this year as the major global central banks remain steadfastly committed to raising interest rates to combat heightened – and persistent – inflation..."

Commenting on the 2022 Scheme Funding Analysis published by the Pensions Regulator, Laura McLaren, Partner, Hymans Robertson says:

“Today’s analysis covers the latest tranche of valuation submissions received by the Pensions Regulator in the period to 31 December 2021. Spanning valuation dates between September 2019 to September 2020, this includes the early part of the COVID-19 pandemic..."

Keeping up-to-date with technology is the biggest challenge facing DB Pension Scheme Sole Trustees, according to Hymans Robertson’s annual report on the evolution of sole trusteeship. Almost two thirds (62%) of sole trustee respondents said ensuring they have the technology in place to support the continuous scheme management style that suits sole trustees’ governance approach was the biggest challenge for the next few years.

Commenting on the DWP consultation, Draft Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations 2023, Laura McLaren, Partner, Hymans Robertson says:

"Today’s long-awaited consultation launched by the DWP into regulations underpinning the new defined benefit funding code is an important step forward. After numerous delays, notably it is expected to pave the way for the Pensions Regulator to launch its second consultation into the Code of Practice later this year. That keeps plans on track – at least for now – for the Code to launch in late 2023...