Your DB Risk
The key to managing pension risk is in understanding the nature of the liabilities in the context of your company?s wider financial situation.
There is usually an immediate need to manage the short-term issues with the trustees, the Pensions Regulator and scheme members, which should involve more than simple recommendations for a series of cash payments.
The next stage is to identify how and in what time frame to fund the deficit. This may involve:
- Raising debt or equity to fund exceptional contributions
- Negotiating with members to reduce liabilities
- Using alternative funding assets such as parental guarantees, letters of credit, credit risk insurance or contingent asset security
- Design and implementation of investment strategies consistent with company needs
- Design and use of liability management products when available
Approaches need to be devised in the context of your company?s wider financial structure, including its tax position. For information on which solution suits your company best, click below:
- For Corporate Planning solutions click here
- For Merger & Acquisition solutions click here
- For Corporate Recovery solutions click here
