Author: Roger Lawrence

Defined Benefit (DB) pension schemes in which the employer bears the investment and longevity risk have been on a downward journey to eventual extinction in the U.K. and many other jurisdictions for years. Extending life spans and low investment returns have combined to make running these schemes far too operationally risky for most employers including many of the largest. To cap increasing liabilities, most have either closed to new members (the lowest level of intervention), through to also stopping new accrual of entitlements for existing workers, and on to eventual buy-out or other run off strategies. The market for these…