Strategic consulting for trustees

Trustee pensions issues

Our LCP Trustee Consulting practice provides advice on pensions issues that are of specific concern to trustees, such as:

• Delivering a coherent funding and investment strategy
• Assessing the strength of the employer covenant
• Achieving effective and efficient scheme governance and internal controls
• Working constructively with employers to protect members' interests, whilst recognising the objectives and constraints of the employer.

We work with our clients to understand their business needs and strategy. Drawing upon our industry knowledge we ensure our advice is solution led, appropriate and supports our clients in achieving their objectives.

Corporate change

As businesses change and evolve the trustees have a fundamental role to play in protecting member interests and benefits.  The Pensions Regulator has made it clear that trustees are obliged to consider and take appropriate action to address events which may affect existing and future plan funding.

Corporate change can come in many forms including:

• Changes of ownership of the sponsoring employer(s)
• Movement of cash to other companies in a group, for example to an overseas parent
• Measures such as debt re-financing undertaken to turn around under-performing employers.

We are experienced in supporting trustee clients through a corporate led change, including being brought in as specialists working alongside existing advisers.  Importantly we help trustees form an objective assessment of the employer's financial position and prospects, and then translate that into the implications for funding and investment.

Pensions communication

A key element of providing pension benefits is ensuring that members understand and value the benefits they receive. Trustees will also want to make sure that the communications are accurate and timely.

During this period of continuing pensions change, clear member communication is essential. Depending on the type of change and category of members affected, the communications will need to be tailored so that members understand what is happening, what it means for them and any steps or decisions they need to take.

This is especially true of defined contribution pension arrangements where the amount of pension that a member ultimately receives will result from the amount of contributions paid, how their funds are invested and what form of benefits they take at retirement.

We have wide experience of communicating tailored messages to members. This includes drafting and producing paper and electronic announcements, letters and statements. We regularly deliver presentations in person, by podcast and DVD.

Mortality

How long pensioners are going to live is one of the key considerations when analysing the financial position of a defined benefit pension plan.

Selecting a mortality assumption can be a challenge for trustees making funding decisions and for company directors when preparing their financial statements.

We help trustees select an appropriate mortality assumption by explaining the issues, analysing the key characteristics of the pension plan members that help predict life expectancy and illustrate the financial impact of the alternative assumptions.

We also advise on the range of rapidly developing options available to manage mortality risk.