Ian Cormican, Partner at Sackers, commented: “2019 looks set to follow 2018 as a year with a high volume of insurance transactions. It is more important than ever that trustees aspiring to complete bulk annuity transactions ensure they are in the best place to move quickly and make their scheme appealing to insurers. Whether a buy-in, buy-out or longevity swap, it is clear that well prepared schemes, such as those who have resolved data issues and agreed a policy for the nuances of their benefit specification, will be best placed to achieve an optimal outcome.
“Our latest guide provides a comprehensive summary of the issues and suggests ways to address them, to give trustees the tools and confidence to develop a clear strategy towards a transaction. We can support trustees to ensure they are aware of the potential pitfalls and our experience will help them address difficult areas that may otherwise delay or increase the cost of their insurance transaction.”
Containing an update of all the latest developments and progress surrounding trustees’ duties in this area, the guide focuses on:
• The importance of clear objectives, as well as strong data and benefit specifications
• The scope of the project and the use of discretionary powers
• The extent to which member options, AVCs and tax protections can be preserved
• The key challenges underpinning longevity transactions.
The guide can be found in full here.
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