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Funding/design

An innovative approach to scheme design, funding or investment strategy may help ease funding issues or provide capacity to look at other risk reduction options.

A range of alternative financing structures, ranging from basic to highly sophisticated, is available to help pension scheme sponsors provide additional security or improve their scheme’s funding position without necessarily making direct cash contributions. Our October 2015 guide ‘Cash is not (always) king: alternative financing options for pension funds’ highlights the options, their pros and cons, and how they can be combined or tailored to fit your business and support your scheme.

We advise schemes on a range of design changes, from the introduction of new member options and pension freedoms, to ways of limiting future growth in liabilities. Innovative approaches to new member flexibilities can achieve a win-win solution, offering advantages for members and reducing scheme liabilities. Read more about our work for the Britvic Pension Plan.

Using group assets to provide a source of income to the pension scheme can bring benefits for both the sponsoring employer and trustees. Our Pension Risk group has completed several high-profile contingent asset structures, acting both for sponsoring employers and trustees. Find out more about using contingent assets for pension scheme funding by downloading our briefing note.

We're sometimes asked what types of asset can be used in these funding structures, and how difficult it is for employers and trustees to agree these deals. Find out more about asset-backed funding.

Download our guide

Cash is not (always) king

Alternative financing options for pension funds

Pension Risk Group