Liability Management & PIE

(Pension Increase Exchange) exercise

 

Client

Large-sized charity

 

Objectives

  • Agree scope and manage a scheme’s liability through a PIE (Pension Increase Exchange) exercise 

Solution

We identified a tranche of benefits that could potentially be exchanged for a one-off increase. Our experts then conducted a cost/benefit analysis of the proposed exercise.

 

Our trustees then negotiated with the sponsoring employer about the value of the proposed one-off increase offered to members.  We helped produce a clear communication package to the scheme’s pensioners, clearly explaining the value of the increase, its cross-over point and the impact of accepting the offer. 

 

All pensioners who received the offer had access to full independent financial advice (paid for by the sponsoring employer).  Indeed, the employer insisted upon financial advice being provided to all pensioners that were identified as ‘vulnerable’. 

 

Following the success of this initiative, members approaching retirement are now given the option of this one-off increase. 

Want to know more?

Contact PSIT:

Call: 0118 918 5469