

Pension Risk Group
Managing defined benefit pension risk is high up the corporate agenda. Whether in deficit or in surplus, scheme funding levels present complex issues for sponsoring employers. Market conditions remain unpredictable, leading to balance sheet volatility which affects business strategy and corporate value.
The introduction of a revised regulatory funding framework will mean that most private sector defined benefit schemes will be required to name a long-term objective, whether that is run-off (paying benefits as they fall due over time), buying benefits out with an insurer, or transferring the scheme to a DB superfund or consolidator vehicle.
How can we help?
The Allen & Overy Pension Risk group brings together experts across a range of specialisms to help schemes and sponsors achieve the best outcomes in all aspects of pension scheme design, funding, investment and derisking. We have experience in designing solutions at every stage of a scheme's lifecycle and throughout the transition to buyout and eventual winding up.
Use the links below to find out more about the issues that are relevant for you.
We have a long track record of advising on market-leading transactions and innovations including:
- trust-based escrow structures and asset-backed funding arrangements to improve scheme security while mitigating the risk of overfunding
- long-term parental guarantees linked to dynamic funding and strategy agreements
- new buy-out structures including the early transfer of liabilities in advance of a buyout process
- ground-breaking deals and innovations in risk transfer (longevity swaps, buy-ins and buyouts)
- restructuring solutions – solving difficult commercial situations, working with the Pensions Regulator and the Pension Protection Fund
We deliver tailored solutions to address the unique needs of each employer and pension scheme, balancing the needs and interests of all parties to reach agreement efficiently and, often, at speed to deliver results when market conditions are favourable.
Funding and overfunding: designing the end-game
Funding and overfunding: designing the end-game
Investments
Longevity swaps
Buy-ins/buyouts
Derisking: an international issue
Key people
Removing unrewarded risk through swaps and other derivatives. And, pension increase exchanges, enhanced transfers and targeted use of flexible drawdown.
Such as investment management; dynamic funding and investment solutions and liability driven investment.
Including scheme design changes to limit future exposure; deficit funding through contract or escrow arrangements; contingent asset structures and corporate solutions and appointments.
Including insurance-based longevity swaps; buy-ins, partial buyout of risk segments and full buyout and wind-up.
Recognition
“European Pensions Law Firm of the Year”
European Pensions Awards 2017 and 2018
Pensions Law Firm of the Year 2019
UK Pensions Awards
Pensions Litigation Firm of the Year 2019
UK Pensions Awards