Fifth of DB pension schemes report no barriers to endgame planning – Standard Life

Trustees of defined benefit (DB) pension schemes are pushing ahead with planning for buy-in and buy-out deals, according to research from Standard Life.

Nearly a fifth (17%) of schemes said they faced no barriers to execution.

Among 100 trustees managing schemes with assets of £100m or more, a third (33%) said market volatility was their biggest challenge. 

The same number (31%) highlighted issues with illiquid assets and data quality. 

Trustees reported using secondary market sales, sponsor loans and deferred premiums to deal with illiquid assets and prepare portfolios.

Data problems were still a concern for nearly a third (31%) of trustees, but 83% have either finished or started data cleansing, and one in eight (13%) plan to do so.

Claire Altman, managing director – BPA & individual retirement at Standard Life, said: “While the industry debate around the option of DB scheme run-on and surplus extraction continues to attract attention, our research shows that trustees remain focused and are demonstrating growing confidence as they move closer to their endgame goals. 

“While challenges such as market volatility and illiquid assets remain, many schemes are increasingly well-prepared to manage them.