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.