Pension Reviews

Although the pensions landscape is undergoing enormous change, the fact remains that around 80% of the approximately 1,100 Defined Benefit Pension Schemes in Ireland still remain insolvent and the deficits for these schemes still need to be managed.  Whilst accrued benefits were once considered sacrosanct, these are less so now and ultimately legislative safeguards are weak. Whilst significant investment risk taking was commonplace in the past, de–risking schemes are now becoming a major consideration. Whilst additional funding requirements was once considered the employer’s problem only, it is now everyone’s problem.

Having been involved in almost twenty pension reviews in the past 12 months and having advised employers, trustees, unions and third parties we have gained a unique understanding of all of the stakeholders’ perspectives.

• Using our Review Framework, our approach to pension to pension reviews involves:

  • Defining the current position including the rationale, objectives and drivers for the review.
  • Developing a range of options based on high level principles and objectives.
  • Refining the options covering the possible phasing in of changes and offering individual members choice
  • Considering governance issues including anticipating future events 

• Pension Review Forum Session

  We have developed a pension review forum session which covers these 4 areas from both the actuarial and legal aspects on the one hand and the industrial relations considerations on the other.

  The session which typically lasts approximately a half a day is inter-active and highly practical. We believe it is unique in the market by:

  • Bringing together the actuarial and implementation considerations
  • Stress testing the rationale for the proposed changes and identifying likely reactions
  • Ensuring the steps involved in laying the groundwork for change are outlined
  • Providing “top 10” insights into implementing the changes

Based on our experience to date, it is clear that a shared understanding of the issues amongst all stakeholders is the first crucial step in making any progress in a review. It is also evident that no one solution that can be applied to all schemes and any proposed change to the scheme is ultimately a trade off between funding, risk and benefits.  Member communications is also be an essential element of any review process.

For more information on our services and how we can help, please contact Maurice or Tara or call us directly on 01 649 9021.