Solutions
Solutions
Companies may look to transfer the risks associated with defined benefit pension scheme's for a variety of reasons. Some of our clients have expressed a desire to:
- Replace uncertainty of investment market returns with a guaranteed investment
- Utilise the value of pooling longevity risk to protect scheme assets against the risk that their particular members live longer than average
- Obtain strong capital backing if the sponsoring employer is smaller, weaker, or even non-existent compared to when the scheme was established
We recognise that having an objective specific to your scheme's need is an important part of the risk transfer decision.
In addition, external influences such as accounting standards and financial markets can also impact on a decision to de-risk. Our approach is to understand your scheme, your issues and appetite for risk – and develop a tailored solution to best suit you.
This section identifies some of the types of solutions that are available. Since we cannot cover all factors, we also provide a selection of case studies that demonstrate potential solutions to real issues you may be able to relate to. Working together with you and your advisers, we can help safeguard the benefits for your members’ lifetimes and their survivors.
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