Pension Risk Group
Managing pension risk is high up the corporate agenda. Deficits in scheme funding have continued to rise despite substantial extra contributions by sponsoring employers. Market conditions remain unpredictable, leading to balance sheet volatility which affects business strategy and corporate value.
How can we help?
A spectrum of options is open to you to help reduce pension liabilities and control volatility. The Allen & Overy Pension Risk group brings together experts across a range of specialisms to help you achieve the best outcomes for your scheme, sponsor and members 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 different ways of managing your pension risk.
Constructive risk management requires a strategic approach, sometimes called a flight path. The key is to identify the level of risk you are happy to carry, and the timescale for each step.
We have advised on market-leading transactions and innovations including:
- new buy-out structures including the early transfer of liabilities in advance of a buyout process
- the ground-breaking corporate takeover of a scheme
- the first longevity transfer to include insurance for members who have not yet retired
- a significant expansion in the world of longevity swaps
- long-term parental guarantees linked to a dynamic funding and strategy agreement
- trust-based escrow structures and asset-backed funding arrangements
- 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.
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.
“Pensions Law Firm of the Year”
FT Pension and Investment Provider Awards 2017Pensions team awarded Pensions Law Firm of the year at the FT PIPA Awards 2017
“European Pensions Law Firm of the Year”
European Pensions Awards 2017Pensions team wins European Pensions Law Firm of the Year at the European Pensions Awards 2017
“Best Law Firm”
Engaged Investor Trustee Awards 2016Pensions team awarded ‘Best Law Firm’ at the Engaged Investor Trustee Awards 2016
“Derisking Consultant of the Year”
FT Pension and Investment Provider Awards 2014Allen & Overy success at the FT Pension and Investment Provider Awards