Planning For A Pension Scheme Buyout

The bulk annuity market has seen an increase in full scheme buy-ins, which is a significant milestone for any pension scheme. However, there are still lots to do before the buy-in is converted to a buyout and the pension scheme can be wound up. Katherine Russell, Melissa Wong and Alice Fletcher highlight the key steps and considerations following a full scheme buy-in.

It often surprises sponsoring employers to understand that the typical timeframe for a scheme to move to buyout and wind-up following a full scheme buy-in is two to three years. This is particularly true for US sponsors if they have experience of undertaking a similar exercise for their US plan where the process is often much quicker.