Risk Reduction

The buyout and risk reduction marketplace has grown significantly over the past two years. Yet, the dramatic deterioration in the world economy from September 2008 has made traditional buyouts less affordable - as pension scheme asset values have fallen and company finances have deteriorated. Despite this, the need for companies and trustees to reduce risk in their scheme has increased markedly. This debate will assess the case for buyout and risk reduction in the current economic environment - looking at the costs and benefits for trustees and schemes sponsors and examining the options available. The Professional Pensions Conjecture will look at: * The ways in which the immediate cost of buyouts can be reduced * Other routes to risk reduction such as longevity insurance * How a buyout or risk reduction strategy can work in practice and how trustees and sponsors can make the process of buying out a scheme easier for when they eventually make the move * How to communicate risk-reduction strategies to members and assess whether a communications strategy should be changed for different groups of members * Why trustee engagement with sponsors is key for a successful buyout * How the risk-reduction market will develop over the coming year