Programme

Delegates were able to explore buyout solutions to manage risk in their schemes. Topics and discussions for the day included:

09:00	REGISTRATION AND REFRESHMENTS
09:30	CHAIRMAN’S INTRODUCTION Jonathan Stapleton, Professional Pensions Assessing the marketplace – an overview of the buyout and risk-reduction marketplace and how it has grown over the past year.
09:40	ASSESSING THE CASE FOR BUYOUT AND RISK REDUCTION Martyn Phillips, Prudential •The costs and benefits of buyout and risk reduction for trustees and scheme sponsors • Selecting the right option • Assessing the security of buyout firms • Non-price considerations
10:00	IMPROVING THE COST AND EFFECTIVENESS OF RISK REDUCTION STRATEGIES Fiona Matthews, Watson Wyatt Worldwide Deteriorating company and scheme finances have meant it is becoming more difficult to afford a traditional buyout. Despite this, there are several options that can be considered to help reduce the immediate costs of buyouts in the pension scheme. • a focused strategy and quick decision making • clear investment strategy to support buy in/out • the value of liability management, • ongoing monitoring to spot the appropriate time • segmentation of liabilities to look at partial buy ins, etc • data cleansing as a key to success • communications to keep membership informed and supportive - which will lead to more cost effective risk reduction • value creation and ultimately better value buy out
10:20	GROUP Q+A
10:35	COFFEE BREAK
11:05	OTHER ROUTES TO RISK REDUCTION – (1) Longevity Insurance John Fitzpatrick, Pension Corporation Longevity insurance can allow pension schemes to insure only the longevity risk of pensioners. This can help cap the exposure of the liabilities to future longevity improvements and could even increase the chances of a buyout further down the line by potentially reducing the cost.
11:25	OTHER ROUTES TO RISK REDUCTION – (2) Capital Market Solutions Kevin Wesbroom, Hewitt Associates Scheme specific bonds and derivatives can remove nearly all the financial risks involved in running a scheme. This session looks at how such strategies can be implemented and the risks and benefits associated with them.
11:45	COMMUNICATING RISK-REDUCTION STRATEGIES TO MEMBERS Robert Purse, Pension Review Associates • How to communicate risk-reduction strategies to members • Assessing whether a communications strategy should be changed for different groups of members such as pensioners or deferreds • Understanding the wider public relations implications of buyouts
12:05	CASE STUDY – HOW A BUYOUT WORKS IN PRACTICE Paul Jayson, Barnett Waddingham Taking companies, trustees and scheme members through a step by step guide to how a buyout would work.
12:35	GROUP Q&A
12:50	LUNCH
14:00	PREPARING FOR BUYOUT OR LIABILITY REDUCTION Emma Watkins, MetLife Assurance • How careful preparation of scheme data can ensure a more accurate quotation, cut costs, and ensure a smooth transition to a buyout provider?
14:20	THE LEGAL IMPLICATIONS OF BUYOUT OR RISK REDUCTION Neil Bowden, Allen & Overy LLP • A checklist of things companies and trustees should be aware of • Trustee liability – is it really transferred? • How different buyout structures differ from a legal standpoint
14:40	FUTURE TRENDS David Collinson, Pension Corporation 2008 was a record year for buyout providers – with a total of around £10bn of business being written. How the economic climate will affect the market over the next year and when will be the best time for sponsors to consider buyout.
15:00	GROUP Q&A
15:15	COFFEE BREAK
15:30	PANEL DISCUSSION Antony Hayes, Hewitt Associates Anil Sharma, Prudential Emma Watkins, MetLife Assurance James Riley, Watson Wyatt Worldwide
16:25	CHAIRMAN’S CLOSING COMMENTS Jonathan Stapleton, Professional Pensions

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