Closed Schemes Strategies

Once a scheme is closed to future accrual or even just to new entrants there is a fundamental shift in the dynamics of that scheme. No longer will the scheme run in perpetuity but will have a finite lifespan. As a result trustees and employers need to develop long and medium term strategies for the scheme to ensure that the scheme can be run off over a suitable time scale at a reasonable cost.

We can help employers by carrying out projections of future cash flows in order to agree investment strategies with the trustees. We can model and monitor the development of any buy-out deficit and also, in the case of multi employer schemes still open to accrual (but not new members) when it is likely to fall due. We can also help you plan and negotiate a period of phased buyout and help you restructure liabilities to lower the costs of buying out.

If you have a closed scheme and would like help then contact your local First Actuarial office.