Lorica has set up an Actuarial and Risk Management division to give employers advice and support on how to manage, reduce or eradicate the risks associated with operating Defined Benefit (DB) pension schemes and other trust based arrangements.
Sean Gilfeather, who has joined Lorica to head its newly established Actuarial team believes "the ever increasing legislative burden surrounding pension schemes, people living longer, taxation changes for high earners and the exacerbation of these issues caused by the recent recession, have led to DB schemes becoming even more out of favour with an increasing trend in employers closing schemes to new members and accrual."
Gilfeather adds that many employers have legacy DB schemes which pose significant financial risk and constitute a substantial portion of their overall employee benefits spend, sometimes with little or no benefit for their current employees.
"Lorica recognise that DB schemes are now incompatible with modern employee benefits packages and carry substantial risks and financial implications for many employers," says Gilfeather. "There is a greater need for employers to take action now in order to come up with a permanent solution."
"Employers with DB schemes are paying substantial fees to advisers and administrators, just to ensure that the DB scheme is compliant with legislation. The DB scheme is in effect just treading water. The employer won’t be getting much return for their money or from their advisers as they are advising the trustees."
"Lorica’s new actuarial team will aim to help employers in a new and innovative ways," Gilfeather states. "Employers have to start thinking about how far down the line they are on the de-risking path. Have they even started to think about de-risking? Are they already managing the risk? What are they doing to help reduce the risks?"
"Our focus is on providing employers with viable pensions solutions in collaboration with the trustees"
For more details contact:
David Wallen or Ross Clarke at LIVEpr on 020 7630 1100
93 Jermyn Street
St James's, London SW1Y 6JE
T: +44(0)20 7930 5550
M: +44(0)7802 745 801
F: +44(0)870 121 5572
Lorica (lorica.com) is one of the UK’s most experienced and well-respected consultancies providing independent guidance on a comprehensive range of insurance products including group risk, healthcare, pensions, financial services, and online solutions including flexible and tax efficient benefits.
Submitted by NeonDrum on behalf of LIVEpr Ltd
Nicky Denovan / T: +44 7747 017654.