We understand the many challenges facing Defined Benefit Pension Schemes now, and in the years to come.
We have developed a suite of products for UK pension schemes through an insurance based solution, leveraging the unique strengths and scale of the Life company and the expertise of the asset manager.
Endgame Solutions
Having a risk buffer is essential when you're considering Endgame Solutions, such a buffer can either be inside or outside the pension scheme. The types of buffers needed by schemes include:
- Extra scheme funding (needed to cover risk, but not for benefits)
- Long-term reliance on sponsor covenant (not ideal for most schemes)
- Contingent assets - charges over property, escrow accounts etc.
- Fully outsourced to an insurer (covering 1 in 200 year losses)
- Partially outsourced – to a third-party capital provider
We believe our innovative pension de-risking solutions listed below look to provide these essential risk buffers.
Our pension de-risking solutions
The key aim for a Trustee is to safeguard the payment of members' pensions now, and in the future. There are a number of risks which makes this goal not as straightforward as it seems - longevity, inflation and investment. These can impact the funding position of a scheme and transferring pension risks through a buy-in or buyout can help.
The AFS is for pension schemes that are ‘well-funded’ and allows DB plan trustees to secure additional security without requiring the sponsor to put additional assets in the plan. A vehicle for a sponsor who wants to continue to run a plan, where this arrangement can provide additional security to plan trustees, as well as the ability to fund towards eventual buy-out. Can be tailored to the Trustees’/Sponsors preferences in terms of the how the assets are run and the events that trigger distribution.
This is an Insurance Escrow, open to the full range of unitised investments, written on Offshore Bond architecture, under a pension policy/trust and with a specific contract for each policy.
Why choose M&G plc?
As an international savings and investments business, we manage and administer £343.5 billion of financial assets for the benefit of our clients. Our clients consist of a broad range of individuals, pension funds, insurance companies, wealth managers, financial advisers and other distribution partners across 26 markets.
We provide a wide range of savings and investments products and services to our clients, who trust us to manage their assets responsibly and help them achieve their financial goals.
We segment our business into Asset Management and Life and Wealth, which reflects the range of propositions and services we offer to our clients.
Latest news and insights
Alternative risk transfer approaches
Listen to Russell Lee and Gurbani Swanni from our Solutions team talk about 'Alternative risk transfer approaches'
Is increased talk of scheme run-off a threat or opportunity for insurers?
Listen to Gurbani Swanni present at the recent Westminster and City Programmes Bulk Annuities Conference.
Meet the team
We have the experience and expertise to guide you through our pension de-risking solutions, from initial conversations to delivery and ongoing support. We are committed to delivering commercially-focused outcomes and meeting the desired endgame solution for your scheme.
