Pensions endgame

Pensions & benefits

We help trustees and sponsors of pension schemes understand and manage the costs, risks, timeframes, and opportunities associated with different pensions endgame strategies. This strategy could be targeting run-off or, at the appropriate time, transferring the scheme to a third party such as an insurer or superfund.   

Whatever the target, we work with pension trustees as well as key individuals across corporate Finance and HR departments to ensure that:  

  • Clients are accountable and pension benefits promised to members are paid and managed appropriately.  
  • Pensions endgame objectives are connected and well-informed, take account of different stakeholder viewpoints, and represent good value for money.  
  • Strategies are agile such that implications of ever-changing pension regulation and new solutions are reviewed and resulting opportunities to improve outcomes are taken.   

We understand the need to protect the benefits for scheme members but appreciate that other important stakeholders are involved too. We develop strategies over the short- and long-term that manage risks and costs and target improved collective outcomes across all parties.  

Why LCP?

LCP are uniquely placed in the market to best advise you on your pensions endgame, covering all angles from buy-ins and buy-outs, run-off, capital backed solutions, and more.   

We offer a one-stop shop providing expert advice to scheme sponsors and trustees on all aspects of DB pensions including covenant, funding, investment, longevity de-risking, journey planning, liability management, member options, and superfunds; as well as how any solution could interact with new or existing Defined Contribution or Collective Defined Contribution pension schemes.

We are independent. We are not here to push products or the next best idea. We'll work with you to understand your objectives and help you understand the range of relevant options, but we'll only invest your time if we think there is a genuine, viable solution for you.

We are driving changes in pensions legislation and guidance with Steve Webb and David Fairs; and are at the cutting edge of the longevity market with Stuart McDonald, our Health Analytics practice, and award-winning de-risking team all leading the conversation and influencing market views. We also have strong relationships with all key market providers. This means you can be confident you are receiving robust advice to create value-add positions which we know will be acceptable to other stakeholders and the advice is always up-to-date and fully informed. 

How we can help

Every client needs an individual solution to suit their objectives and particular circumstances – even within the same industry two clients targeting the same endgame will face very different issues based on the circumstances of the scheme, sponsor culture, and market position.   

We work with both trustees and employers to understand objectives and the ongoing relationship with wider stakeholders (including scheme members, unions and corporate owners). This allows us to create and deliver an effective pensions strategy that enhances value and truly meets our clients’ needs.

Some areas we’ve been talking to clients about recently include:  

  • Improving retirement outcomes for existing employees by using DB pensions surplus to pay for and augment ongoing DC contributions.
  • Generating value to improve the cashflow position of the scheme sponsor, sometimes by delaying an insurer buy-in transaction and sometimes connected with sharing value with scheme members.
  • Optimising pensions strategies through driving innovative longevity risk solutions and introduction of new external third-party capital to support ongoing covenant.   

Our advice draws on support from our specialist teams. It is clear and communicated in plain language to help you make decisions in what is a complex and rapidly evolving technical area. 

How we can help

We are market leaders at each stage of de-risking, including journey planning, investment strategy, transactional services and wind up.

We help sponsors of pension schemes understand and manage the costs and risks associated with supporting their current and legacy pension schemes as well as other employee benefits.

We help trustees understand and monitor the employer covenant.

We help you get your investment strategy right to ensure good member outcomes in your DB and DC schemes.

We help pension scheme trustees and sponsors to determine the ultimate destination for their scheme and help them put together a plan to get there, including how to effectively manage the risks they face along the way.

We help trustees achieve their strategic goals, with solution-led, appropriate advice.

What's on the horizon for DB trustees in 2024?

What's on the horizon for DB trustees in 2024?

Take a look at our priorities for 2024 for DB trustees.

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