Commercial consolidators

What are commercial consolidators?

A relatively recent development in the pensions market this solution provides an alternative to securing your scheme with an insurance company at potentially lower costs.  For some schemes this solution will provide a good outcome for all Stakeholders.

Opportunity to transfer pension liabilities at a lower cost than bulk annuities

An immediate improvement in funding and capital set aside as a buffer which in many cases may be desirable compared to the current employer covenant

A professionally run operation focussed on delivering good member outcomes

How does this compare to a buy-out?

Buy-out Commercial Consolidator
Entity Insurance Company Commercial Consolidator
Regulatory Environment PRA / FCA Pensions Regulator
Backstop FSCS PPF
Risk Lowest risk Should be low risk
Cost Higher cost Expected lower cost
Members Individual Insurance Contract Pension scheme
Current trustees No Trustees New Trustees
Current Sponsoring Employer Removed Removed