Endgame solutions

Endgame solutions

Whatever stage your pension scheme is at on its journey, our expert team provides valuable, flexible support to help define, plan and execute your endgame strategy. We help optimise the risk transfer journey, getting your pension scheme ready to secure the best deal or switch to the right investments and simplifying complexities of processes, data, transfers and protection.

We have significant experience of taking pension schemes of all sizes and complexities on the journey to buy-in and subsequently buy-out, and ultimately to wind-up.

Meet our pension scheme endgame specialists

Most endgame solutions involve transferring risk away from the pension scheme, its members and sponsoring employer to third parties. A variety of risk transfer solutions could be part of your pension endgame strategy, including:

Buy-in & buy-out

We pass investment, longevity, interest rate and inflation risk to an insurer and fully secure member benefits, for either a group of members (partial de-risking) or all members.

Buy-in & buy-out

We have significant experience of taking pension schemes of all sizes and complexities on the journey to buy-in and subsequently buy-out, and ultimately to wind-up.

We understand the importance of planning and ensuring your scheme is well prepared to approach the insurance market. We can help you on your journey by bringing our expertise and experience to efficiently navigate the important final step in the pension scheme’s lifecycle.

Pension scheme consolidation 

We improve security and cost efficiency through a range of solutions from sharing services (such as administration) and pooling assets, to master trusts and ‘superfunds’.

Pension scheme consolidation 

Consolidation can range from merging trustee boards or schemes, to streamlining services at the ‘lighter touch’ end, through to larger structural changes such as transferring to a master trust (which retain a link to the scheme sponsor) or ‘superfund’ (where the link to the sponsor is removed). Some of these are well trodden paths that enable efficiencies to be obtained, whilst others are relatively new concepts in the market.

We ensure we are familiar with all of the different propositions in the market so we can understand and discuss the best solutions with trustee boards and sponsors.

Strategic investments 

We ensure risk-efficient asset allocation ahead of other endgame solutions or structuring investments to achieve self-sufficiency over a long-term run.

Strategic investments

The investment strategy is always an important part of a pension scheme’s overall strategy. As schemes look to target a longer-term self-sufficiency strategy this becomes even more important.

We have significant investment and long-term strategy experience, enabling us to work with our advisers to build a robust portfolio of assets to deliver stable growth with low volatility, designed to ensure there is no further input required from the sponsor.

Our investment experience means we can challenge the strategies put forward by advisers and ensure sustainable considerations are thoroughly considered to maximise the long-term robustness of the portfolio.

Alternative risk transfer

Where a pension scheme uses external capital to improve funding stability, we increase the likelihood of attaining their specified endgame in a particular timeframe.

Alternative risk transfer

Also known as alternative capital or capital-backed journey plans (CBJP).

These solutions are relatively new concepts, where external capital is provided in exchange for seeking higher investment returns.

Whilst they may not be a viable option for all schemes, they do have a place within the market and can fulfil a role in certain circumstances. Vidett were the first trustee company to complete a transaction with a CBJP.

Our relationships with the advisers and providers of these solutions, enable us to keep on top of the offerings and to understand the subtle differences between those operating in the market.

Specialist buy-in and buy-out for PPF+

For well-funded schemes with a sponsor in financial difficulty, we can secure benefits for members in excess of those provided by the Pension Protection Fund (PPF).

Specialist buy-in and buy-out for PPF+

Our expert team sit on the PPF panel and have experience of dealing with the delicate negotiations required to ensure a deal can be reached to the benefit of scheme members. This could be part of a deal to save the employer or after the scheme has entered a PPF assessment period.
 
In both scenarios, we work closely with the PPF to ensure the best outcome for our scheme members.

Learn more about different endgame solutions from our range of insights, and read our service flyer for further information.

Our experienced team will help you find the right endgame solution and add value from day one by:

Case study

The pension trustees decided to test the market to see if the
time was right to secure a buy-in of pensioner liabilities. There
was a clear deadline for it to happen – the sponsor’s year end. If
it went ahead, the buy-in would affect the company’s balance
sheet so open discussions between the pension trustees and
scheme sponsor were vital.