Defined Benefit (DB) pension liabilities represent one of the most difficult issues facing many Finance Directors in the UK today.
In the past the risks and volatility associated with DB pensions were deemed an acceptable price to pay for providing employees with some certainty of retirement income. Ironically, the intervention of government and pension regulators to reduce the risks for DB pension scheme members has created an environment where DB pensions now represent an unacceptable risk for most employers. Thus, the issues now facing employers are:
- how to de-risk the provision of pension liabilities that have already been earned
- how to provide future pension benefits for employees at less risk and an affordable cost, whilst at the same time providing employees with an expectation of a realistic level of pension in retirement.
Xafinity’s DB Exit Management Practice has helped many organisations to successfully manage their exit from DB pensions. Our modular approach enables companies to navigate the financial, legal and regulatory challenges and do so in a structured way. Additionally, our extensive skills in modelling liabilities and cash flows ensures that all of the financial risks are identified, measured and hence, can be acted upon.
Our Exit Management Practice has successfully assisted many organisations, allowing them to embark on this journey with confidence.