Perspectives

Pension Schemes Act 2021 (PSA21) has returned insolvency analysis to the forefront of many trustee agendas.

The significant increase in deal-making activity seen both in the UK and globally, coupled with the introduction of the Pension Schemes Act 2021 (PSA 2021) has meant trustees are increasingly having to manage the impact of fast-paced corporate events on the pension scheme.

The dawning of a New Year provides us with the chance to reflect on what we’ve experienced in the year just gone and what challenges and exciting opportunities lie ahead.

In 2016 the pan-European insurance regulatory regime, commonly known as Solvency II, came into effect. In our latest End-state Market Update, we explore the key trends that have shaped the bulk annuity market since the introduction of Solvency II; and the implications that these trends could have on the protection provided by insurers to member benefits.

Climate change, and the world’s response to it, is expected to have a fundamental impact on sponsors across the globe. However, despite the eminent risks, the impact on the employer covenant is often not something that trustees are considering in detail.

The PensionSketch tool was developed following our award-winning PensionSim scenario simulator for DB pension schemes. PensionSketch allows trustees and sponsors to plan long-term in regards to their journey planning or assess their risk.

We have worked with leading academics to develop MACCI, a ‘first of its kind’ scenario-focused approach which breaks down the complexity of climate change to help trustees model covenant risk.

Looking beyond the rating – an early New Year’s resolution. What is the purpose of a covenant assessment? Whilst the first task is to provide a robust rating for the covenant, it’s the “so what” that really matters.

Using practical examples to explain IRM in the context of trustee decision making along the journey to an appropriate end-game.

The social and economic implications of inequality are rarely discussed in the context of sustainable investment: that needs to change.

Exploring hedging ratios in the context of Integrated Risk Management.