Why are schemes using bulk annuities?
DB pension schemes are, in the majority of cases, a legacy issue for companies and trustees to manage. The vast majority of schemes are closed to new entrants and the majority of those are closed to future accrual. As a consequence, the interest of all Stakeholders are aligned in using bulk annuities to manage the risks posed by these closed schemes.
Removal of volatile legacy balance sheet risk
Secures all members benefits
Peace of mind
The difference between a good or a bad outcome from purchasing a bulk annuity can be as much as 10% of the liability value. That’s why most schemes are choosing a specialist to help them.
The K3 approach
Our specialist advisors have developed our approach to drive best value and minimise execution risk, based on decades of experience on the insurance and pension scheme side of transactions. Key to our approach:
Clear advice on how ready your scheme is to approach the insurance market
Position your scheme in the optimal way to insurers
Strategic advice on the right size and shape of bulk annuities for you
Your scheme’s specific Request For Quotation pack issued to insurers
Detailed analysis of insurer quotations to ensure accuracy
Advice on shortlisting of insurers
Bespoke negotiation with shortlisted insurers to reduce the insurance premium
Run an insurance beauty parade
Advice on final selection of preferred insurer
Commercial negotiation of insurance contract
Project Management of entire process
The regulated advice you need
“Adam thinks like the insurers and can spot opportunities where none seem to exist. In one such case we reached buy-out a startlingly two years ahead of schedule.”
Suresh Bhatt – Partner, Gunnercooke and Professional Trustee, gcTrustees Limited