Hymans Robertson case study

Maximising Value in DB

Published by : Hymans Robertson

Value for money is an established concept in DC pensions, and is now gaining momentum in the DB landscape. Recently, the Regulator has issued a statement encouraging DB schemes to assess value for money, and the forthcoming DB Chair's Statement is likely to require schemes to demonstrate how they are achieving this.

Value is often associated with reducing running costs, but we must look broader than this. Our analysis shows that by looking across 3 pillars of value creation, there's potential to create £275bn of additional value across UK DB, slashing the collective shortfall by more than half.

Download our paper where we help schemes understand how they can maximise value on behalf of their members, and explore each of the 3 pillars of value creation in more depth:

- Long term objective: restating the long term objective to take account of attractive insurance pricing and new consolidation options reduces the collective shortfall across the UK by £100bn.
-Efficient strategy: adopting an efficient strategy to bridge the funding gap and make capital work harder chips away at an additional £175bn.
-Operational effectiveness: optimising governance and operational structures has the potential to reduce running costs by up to 50%. 

Published:07 November 2018

Business Area: Pensions Management/Institutional Investment

Type: Portable Document Format (.pdf)


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