Unfortunately there are many defined benefit pension schemes that are either winding up or migrating to a defined contribution model. This is a huge change of circumstance for all members. Often the scheme Trustee is the only party who is giving advice on the process. This is suboptimal and can create potential conflicts of interest especially for Trustee firms who also provide defined contribution solutions. This may open up the company to some legal risk as this is an area where litigation has increased. Additionally Trustees are often not best placed to give all members personal and independent advice. Engaging an independent adviser to work in conjunction with the Trustees is the more appropriate option to reduce litigation risk, secure improved terms and offer members suitable independent advice.
So whether you are a scheme member, trustee or management; if you are considering or dealing with a pension scheme restructure, do the right thing and get a second opinion and independent advice. You wont regret it.
Please contact us if you would like to hear how we have helped other company pension schemes through the restructuring process and delivered much better value as well.