Leonard Bowman, Head of Corporate DB Endgame Strategy at Hymans Robertson, comments on the number of corporates that are at risk of de facto buy-outs due to a lack of endgame strategy.

Hymans Robertson is warning that schemes are sleep walking into a de facto buy-out because of a lack of endgame strategy. The results of polling at a recent firm webinar on how to avoid this risk, found that the majority of those surveyed (87.8%) do not have a fully planned end game strategy with clear structured timeframes in place, leading to decisions being made almost by default. Further indication for the need for better endgame understanding was highlighted by a second poll which found that only half of those surveyed (56.7%) would buy-out now if they could.

As funding improves for many schemes there is increased urgency on companies to work out their preferred endgame strategy and to engage with their trustees .  Many have avoided addressing this issue, due to the perception that any change in decisions would lead to an investment and funding strategy involving higher company contributions. They are also likely to be wary of taking the risk of becoming “locked in” to a strategy that might not make sense in the future if circumstances change. Whether or not a whole scheme buy-in or buy-out is the way to go, should always be a conscious decision, given the scale of the financial implications.

Full release: Only 12% of Corporates have endgame strategy in place, warns Hymans Robertson

Media contact: Stephanie Stern, Hymans Robertson, 0141 566 7822 / stephanie.stern@hymans.co.uk