In the face of persistent and volatile deficits, how do you make sure that your scheme delivers the benefits promised to members in full, whilst remaining affordable?
21st century pension scheme risk management
Taking a purely balance sheet perspective to managing funding – focusing on deficits and discount rates, leads to tunnel vision; it doesn’t give a full picture of the risks your scheme takes. And if you can’t see your risks clearly, how can you manage them? When your members’ benefits are at stake, or there’s risk of added pressure on sponsors to plug a funding gap, seeing the full picture is crucial.
Through 3DFunding we look at investment, contributions and covenant in an integrated way to build your strategy based on a complete picture. This lets you explore a broad range of strategies to decide which is most likely to meet your goals. By setting clear, long-term objectives, we align interests across trustees and sponsors and help you work toward a common goal that’s in the best interests of all parties, including your members.
You can keep track of your schemes progress through 3DAnalytics, our secure online application which gives you access to daily analytics at your fingertips, direct from administration source data. From monitoring your funding position and recovery plan, modelling ‘what if’ scenarios, to tracking your scheme against insurance company buy-in pricing, 3DAnalytics helps you track and understand the impact of changes in strategy on both risk and likelihood of success.
As trustees and sponsors of DB pension schemes your job is to deliver members benefits in full, whilst keeping the scheme affordable for the company that supports it; balancing cost and risk is an ongoing juggling act.
Our 3DFunding approach gives you absolute clarity on your strategy and risks on an ongoing basis - not just at triennial valuation time. Our risk-based consulting approach, combined with our innovative 3DAnalaytics technology, including our benefit security covenant analytics, improves confidence in your decisions and your chance of success.
Helping BPI assess long-term impacts
Hymans took a fresh approach to our valuation. They helped us look at the impact of long-term covenant risk on the value of the benefits promised to our members. We were able to explore how best to balance cash, risk and time in a way that improved the value of the promise to members whilst supporting a strong and sustainable sponsor. It also made for a much more focused and constructive dialogue with our sponsor.
British Polythene Industries PLC