Consulting editor(s): Steven Hull, Ashurst LLP
Publication date: Oct 2009
The book fills a considerable void, as information about emerging buy-out markets is not readily available. It would be a valued reference and of interest to the listed target audience.
With the decline of final salary schemes being one of the central narratives of 2009, this collection of essays on the buy-out and buy-in market is nothing if not timely.
Review for Pension Scheme Deficits: This practical guide, intended for trustees, employers, advisers, administrators and other pension stakeholders, is likely to be of interest for some time to come.
This timely book with the subtitle 'The elimination of defined benefit pension scheme liabilities' will be of practical use to trustees and their advisers in this endeavour.
For any practitioner, the book provides a useful summary of the issues, and a wider view from overseas of concerns that obviously afflict employers around the globe.
Review for Pension Scheme Deficits: "Despite the best efforts of investment managers, and the reduction in the numbers of defined benefit pension schemes, deficits are going to be with us yet awhile, which means this book seems destined to have a long and distinguished future in print."
Review for Pension Scheme Deficits: "The contents page in Pension Scheme Deficits reads like a who's who in the pension industry."
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The buy-out market, whereby pension liabilities are transferred to a third-party specialist, has changed dramatically in recent years. Many new market entrants have sought to provide opportunities to employers to reduce or eliminate their exposure to defined benefit pension scheme liabilities in a cost-effective fashion.
Increases in anticipated longevity, combined with historically low interest rates and poor equity returns, have resulted in substantially increased costs for employers. Together with the credit crunch, the collapse of high-profile banking institutions and a deteriorating economy, they provide yet further reasons for employers and trustees to seek to protect defined benefit liabilities.
Buy-outs (and their alternative, buy-ins) have represented an attractive opportunity for trustees and employers alike in seeking to eliminate such exposure. The number of new market entrants and the new ‘non-insured’ buy-out model have generated considerable competition and a significant reduction in buy-out and buy-in cost.
Featuring contributions by leading experts in the field, including the Pension Corporation, Lucida, Hewitt Associates and Pitmans Trustees Limited, this timely title covers topics such as the attractions of the current buy-out market, the non-insured buy-out option, the Financial Services Authority regulated market and the elimination of pension scheme liabilities, as well as an overview of the buy-out market in selected countries.
This book is aimed at a broad cross-section of the pension market and is intended to be of practical use to trustees, employers, advisers, administrators and other pension stakeholders in providing a comprehensive guide to how best to tackle the thorny issue of eliminating defined benefit scheme liabilities.