Adviser review

Even the best adviser relationships can become stale over time. Our view is that changing your adviser is a measure of last resort and most issues can be solved by open and honest dialogue, provided the adviser is willing to listen and respond. We can support clients in a range of ways to get the best from their advisers:

  • benchmarking adviser fees
  • desk top adviser reviews
  • full market tenders.

We were appointed by a client because of the convergence of three recent issues with their scheme actuary

  • increasing fees
  • “outdated” reporting and advice, when compared with other firms’ marketed offerings
  • a recent investment de-risking opportunity having been missed.

The scheme actuary had been in situ for more than 10 years. The consistent message from the pensions director and the senior trustees was how well the relationship worked and how happy they were with the service. However, on the odd occasion when the actuary did put forward possible changes to the service, they were viewed with suspicion and push back, so eventually the actuary gave up. Conversely, the actuary was not alive to the fact that his support team had changed in experience (with the rate card increasing over time) and was no longer the right fit to provide the work required. This was compounded by a nervousness to propose team changes to the client.

We worked through the history of the relationship with the client and, once they recognised they had been a partial barrier to change, we were able to have a mutually open and constructive conversation with the actuary. As a result a programme of new ideas and service offerings was put forward by the actuary, in conjunction with a revamp of the actuarial team which included an additional senior consultant to provide fresh thinking. Two years on the relationship is working well and annual fees remain materially lower than before the review.

10 July 2020

In the news this week, the Chancellor’s summer statement is pensions-lite, a call for input is launched on data standards for pensions dashboards, a company looks to bring its DB scheme closure forward by four years and another large longevity swap is completed.

Getting buyout ready

Covid-19 has created many challenges for DB schemes but, for those ready to transact in 2020, it may have created even more favourable market conditions for a buyout. The problem is that most schemes are not there yet. In this Briefing we look at what being “deal ready” actually means and what work it will involve.

Pensions Arena April 2020

Given the very company/scheme-specific impact of the Covid-19 pandemic, in this quarter’s Arena we simply show all the usual financial and investment analysis for what was a very turbulent first three months of 2020, plus a summary of key pension developments and Company pensions news over the quarter.

Survey of company actions

Over the autumn of 2019, BAC conducted an extensive survey of the actions which companies are taking to manage their defined benefit (DB) and defined contribution (DC) pension arrangements.

Pensions Arena January 2020

2019 marked 50 years since Neil Armstrong walked on the moon and this was obviously on the Queen’s mind in her Christmas message as she talked about a bumpy year but one with small steps of progress as well. In terms of pensions, it also felt like a year of small steps and occasional bumps. In this quarter’s Arena, we take a positive look back at 2019, as well as looking forward to some expected pension developments over 2020.