Final Salary / Defined Benefit Schemes

We provide a bespoke actuarial service for final salary / defined benefit (DB) pension schemes. We offer Scheme Actuary services for scheme trustees.

As part of the Scheme specific actuarial funding valuation, we can provide advice to the trustees on:

We also look forward to providing ongoing consultancy advice such as setting factors for commutations, transfers in and out and other individual calculations, actuarial reports for interim years, implication of possible benefit changes and merger & acquisition work.

Closed schemes

There has been a well publicised trend for DB schemes to close in recent years as employers have become more aware of the increasing costs of running such schemes. This trend has been accentuated by the Credit Crunch.

As a result many schemes have been closed either to new members or to the future accrual of benefits. In most cases however, schemes may have insufficient funds to fully secure members benefits by buying out benefits using annuity products.

This means that there is a growing population of closed schemes which expect to be run down over a long period of years. We are well placed to advise closed schemes as we can provide specialist advice to the trustees whilst keeping the costs of management to a minimum.

We would expect to discuss with the trustees issues surrounding the buy-out process, consider buy-ins or perhaps the buy-out of certain sections of the membership profile.