Claire Altman, MD BPA & Individual Retirement at Standard Life: “With 74% of DB schemes now closed to accrual and 82% of schemes in surplus, up from 80% in 2024, trustees are increasingly focused on securing benefits for deferred and pensioner members, while sponsors are focused on removing these liabilities from their balance sheets. Recent research from Standard Life underscores this urgency: nearly half of large DB trustees now view buy-in as their endgame strategy, and 40% plan to approach an insurer within the next year, with certainty and member security cited as key drivers. ‘The Times They Are A-Changin’ (seasonal thanks to Bob Dylan), and by moving now, trustees can lock in risk transfer and secure member benefits.”
Wendy Davies, Pensions Administration Operations Manager at Quantum Advisory, said: “The updated guidance provides a refreshingly clear and practical framework for strengthening pension scheme administration. The focus on member communications, data quality, resilience and system governance, alongside the experience and qualifications of administrators, reinforces the importance of accuracy, robustness, and consistency in administration services. Looking beyond service-level timeliness to the overall quality of administration reflects the reality of what delivers better outcomes for both members and trustees and underlines that administration is a strategic function rather than a back-office activity.”
Chris Rice, Head of Trustee Services at Broadstone, commented: “TPR’s annual review of the occupational DB market continues to show that this a shrinking market, albeit at a relatively slow pace with private DB and hybrid scheme membership down 3% over the last year. The vast majority of private DB schemes are now closed either to new members or future accruals with 5% also in the process of winding up. The regulator’s review also shows the continued strength of funding on a technical provisions basis with more than four in five schemes now in surplus so it is little surprise that the bulk purchase annuity market has been so buoyant in recent years. With more than 9 million members still in over 5,000 private DB schemes, it is clear that the pensions risk transfer market is set to remain highly active for many years to come as trustees look to secure their members’ benefits.”
|
