Skip to main content
Opens in a new tab External site
2022 pension conference 2022 pension conference

RISK SETTLEMENT

Could Superfunds be right for you?

How do you decide which options are right for your scheme?

The risk settlement options available to schemes are expanding year by year: 2020 saw the starting gun fired for Superfunds. With more solutions available, how do you decide which options are right for your scheme?

The short checklist below will help you assess whether consolidation solutions might be right for your scheme. To get the most accurate indication please complete all sections — this will generate the initial outcomes.

Yes
No

1

Are you unlikely to be able to secure benefits in full with an insurer in the near-future? (e.g. within the next 3-5 years.)

Yes
No

2

Do you have concerns that the sponsor covenant may not support your scheme over the full period to buyout? (e.g. the covenant is weak, uncertain or small in comparison to the size of the scheme, and you are concerned the sponsor will not still be operating in another 5–10 years, say.)

Yes
No

3

Does your scheme have a good mix of pensioners and non-pensioners? (e.g. at least a third of your liabilities relate to deferred members?)

Yes
No

4

Might the sponsoring employer (or parent company) be willing to make a cash contribution now to draw a line under its responsibility for the scheme?

Yes
No

5

Are the ongoing costs of running your scheme a concern?

Yes
No

6

Is it the ultimate goal of the trustee or sponsor to transfer scheme members to a secure third party? (i.e. to remove risk from the sponsor’s balance sheet.)

Yes
No

Verdict:

This outcome should be taken as an initial indication only. To review your scheme‘s specific needs, please contact John Baines, Geraint Jones or your usual Aon contact to discuss in more detail.

If you change your answers after clicking on Submit, please press Submit again to get an updated verdict.