From start line to surplus: hedging for run on

As more defined benefit (DB) schemes choose to run on rather than move straight to buyout, attention is turning to how investment strategies can be refined to improve outcomes for members and sponsors. Our recent article, Making your assets work harder in run-on, explored how investment strategy can support this direction of travel. This article looks at the other key lever: liability hedging. By setting hedging in line with your run-on objective, time horizon and surplus policy, trustees and sponsors can reduce funding level volatility, preserve transaction affordability and create more scope for surplus, without taking unrewarded risk.

The implications of Aberdeens landmark deal

Aberdeen's pioneering transaction to assume sponsorship of the £1.2bn Stagecoach Group Pension Scheme (SGPS) marks a significant milestone in the evolution of UK defined benefit (DB) pensions. The deal shows that there are alternatives for well-funded schemes to access surplus, beyond the well-trodden buyout path. Under the Stagecoach transaction, Aberdeen became the sponsoring employer of the SGPS, enabling the scheme to run-on and deploy surplus assets to enhance member benefits.

Looking back on the LGPS and moving forward

2025 - what a year that was! It has been incredibly busy in the LGPS, particularly in England and Wales, with the triennial valuations; pooling and investment proposals, four consultations at the last count (Access and Fairness, Access and Protections, Fit for the Future proposals, and Fit for the Future draft Regulations); not to mention the Pension Schemes Bill, McCloud, connection to the Dashboard infrastructure - the list goes on! But is 2026 going to be any easier?

Pensions dashboards webinar are you ready to connect

 

Lifestyle Actuary

Dalriada Trustees Limited (Dalriada), one of the largest providers of professional trustee services to pensions schemes in the UK, has today announced the appointment of Sarah Brough as a professional trustee.

Lights Camera Actuary

For the next few months Zoe Bolton will be talking to the senior actuaries in these firms, getting a brief insight into their career paths and visions for the future. This month Zoe interviews Shil Patel the UK Managing Director at Dynamo Analytics

Travelling Actuary

This month's Travelling Actuary takes us to the iconic Boston to experience New England at it’s very best.

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