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Hymans Robertson publishes checklist for DB pension schemes run-on plans

Sachin Patel said: “Our checklist provides a useful roadmap for corporates to ensure they are as prepared as possible for this journey.”

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Sachin Patel, Head of Corporate DB Hymans Robertson
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Hymans Robertson has published a checklist to help sponsors of defined benefit (DB) pension schemes with run-on planning, as many face increased regulatory risks. 

The checklist covers seven areas: checking if run-on is the right choice, agreeing a long-term goal, matching investment strategies, managing longevity risk, keeping up with regulations, reviewing governance, and considering accounting issues.

Sachin Patel (pictured), head of corporate DB at Hymans Robertson, said: “It’s crucial that sponsors of DB schemes take a logical and thorough approach to planning their run-on journey. 

“Of course, the first step in the process is to establish whether run-on is right option for their scheme. 

“If it is, corporates should take time to carefully consider the entire process holistically, and our checklist is a powerful starting point for this process.”

Patel added: “As highlighted in our recent webinar – where over half (52%) of attendees said they saw regulation as the biggest risk to their run-on strategy – regulation is an area that sponsors should constantly assess. 

“Staying ahead of the curve in this area is a crucial method in reducing the risk of any run-on process.

“One area that’s seen significant regulatory development is around DB surplus extraction.” 

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He said: “The government’s direction of travel here is clear. It intends to harness a once-in-a-generation opportunity for sponsors and members to benefit from stronger funding levels. 

“As these changes continue to emerge, high-quality advice will play a crucial role in helping corporates navigate complexity with preparation, clarity and confidence.

“It’s also reassuring to see policymakers listening and acting, with an increasing focus on striking the right balance between oversight and flexibility to deliver the best outcomes for members, corporates and the broader economy.”

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He said: “The government’s announcement around the Court of Appeal judgment in Virgin Media Limited v NTL Pension Trustees Limited is another illustration of the positive step policymakers are taking.

“As the old adage goes, failing to prepare is preparing to fail – and this is especially true for schemes looking to run-on. 

“Our checklist provides a useful roadmap for corporates to ensure they are as prepared as possible for this journey.”

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