DB Optimise

Why companies should take a closer look at their DB scheme

Defined benefit (DB) pension schemes are well known for their complexity, high costs and governance burden. Scheme management will often be based on legacy arrangements that have evolved reactively over time in response to personnel and regulatory changes.

Too often, this results in arrangements that are more complicated and expensive than necessary, and companies that are struggling to achieve the level of control that they would expect.

Adding value through independence

With DB Optimise, you can take a fresh, independent look at the overall management of your scheme. This will identify opportunities to improve governance, reduce cost, and manage risk – making a real difference to the management of your DB scheme.

Why now?

The DB pension landscape is vastly different to just a few years ago and what worked in the past is unlikely to be the best approach for the future.

Corporate sponsors have, for the first time in decades, a realistic prospect of their DB scheme returning surplus assets to them, so controlling costs incurred by the scheme could have a direct financial benefit for the sponsor.

The ‘LDI crisis’, cyber security incidents and increased regulatory scrutiny have all shown the importance of good governance and controls – and the costs where it is lacking. 

Our review service is structured as follows:

• Initial interview with company representatives and our actuarial, investment and governance specialists to discuss DB scheme arrangements.
• Review of appropriate scheme and company documentation.
• Report outlining how effectively the DB scheme is being run, providing assurance and/or recommendation for areas of improvement.
• Follow-up call to discuss findings and actions to improve governance, reduce cost and manage risk.