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Pension Increase Exchange: Long Term De-Risking of Pension Schemes

30 October 2012 by Buck Consultants, A Xerox Company

During the previous decade there has been what seems to be a never-ending flow of developments that have negatively affected defined benefit pension schemes - poor equity returns, low bond yields, higher inflation, improved longevity, and onerous regulatory and accounting requirements.

As the surpluses which existed at the end of the 1990s have turned into large deficits, the significant risks underlying defined benefit pension schemes have become apparent for all to see.

With this realisation came the desire from both corporate sponsors and trustees to remove or reduce some of the risks of running a defined benefit scheme - also known as 'pensions de-risking'.

This paper outlines the rationale and main considerations behind a possible Pension Increase Exchange ('PIE') exercise and where such an exercise could reduce defined benefit pension risk.

To find out more about this, please download the white paper using the link below.

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