Category: DB
The Consolidator Conundrum
As defined benefit (DB) pension schemes mature and become better funded, they are increasingly considering various different end-game approaches.
We propose three questions a trustee board should ask when considering a consolidator; these correspond to the three pillars of our decision-making framework. The first two relate to the potential improvement in support and likelihood of receiving benefits. The third seeks to understand the future sustainability of the consolidators business.
![White Pillars](/landg-assets/lgim/_shared-image-library/in-page-images/our-thinking/pillars.jpg)
In previous papers, we have explored new developments in ways of thinking about pension scheme risk in end-game and on the incorporation of sponsor covenant risk. Consolidators introduce another dimension to end-game pension scheme management. Despite some regulatory uncertainty, there is a possibility that many trustees will find themselves facing the following question: When might a consolidator be right for my scheme?
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