Advice for Companies

Company pension schemes have never had a higher profile. There is undoubtedly greater appreciation by employees, former employees and their representatives, however, does this match the increasing employer costs, investment risks and capital commitments?

Against this background expert assistance is available for -

• Cost appreciation, risk assessment and consideration of options.
• Investment risks and reward, support to trustee board.
• Turnbull - risk assessment and management.
• Scheme (re)design, transfer or orderly wind down or wind up.
• Communications with all stakeholders.
• Independent benefit benchmarking and comment.
• Pensions doctor or independent trustee.
  
  

An independent view and a cost effective solution; please call to discuss any situation or problem.

A typical assignment might involve an initial discussion, information gathering at your offices, stakeholder discussions, brainstorming, a discussion report and debate followed by a formal presentation and recommendations. Management of any emerging actions is of course also available.

Further Comment

For defined contribution arrangements the costs are initially known, but what benefits will be available? The member takes the investment risk but will he/she be able to afford to retire?

For defined benefit (or final salary schemes) lower inflation, lower investment returns and increasing longevity have increased costs whilst greater or maturing employee and member protection have reduced safety margins and options in event of a wind up.

The statutory minimum funding requirements (MFR) (despite recent government relaxation) may still force significant additional contributions and on wind up may result in a significant capital liability (even if it currently only ranks as an ordinary creditor).

Turnbull or general business risk assessment should include pension risks. Whilst old or traditional/manufacturing companies are perhaps the most at risk at least one finance director has been quoted as "running a highly geared investment trust with a manufacturing company as a side line!". Is you pension scheme the tail wagging the corporate dog? New accounting rules have received criticism -but is this not a case of "Don’t shoot the messenger"?

From a general HR perspective, executives, directors and non-executive directors are being challenged on all aspects of remuneration. Now is the time to get an independent and cost effective opinion