How do you control the costs and risk exposures from defined benefit pension arrangements and the impact on corporate activity?
KPMG develops and delivers pensions strategies that support the wider business objectives.
What's on your mind?
- Increasing cash demands from pension fund trustees and volatility in P&L and balance sheet items
- Rising cost of benefits and opportunities to mitigate these costs
- Influence of pension fund trustees on normal corporate activities
- Providing defined contribution arrangements which retain and motivate staff whilst complying with Personal Accounts requirements from 2012
- Providing tax efficient retirement savings for higher earners impacted by the 2009 Finance Act
Bringing you peace of mind
- Our corporate pensions team works with each client to develop a pension strategy that meets their objectives. We support clients in managing changes to defined benefit or defined contribution pensions for current employees, and seeking alternative pension reward which reduces costs and/or risks, and is tax efficient
- For defined benefit schemes we support companies in negotiating cash funding commitments with trustees, use funding approaches which maximise financial flexibility and reduce annual levies payable to the Pension Protection Fund (PPF).We reduce the company's risk exposure by reducing/reshaping the pension liabilities and using insurance and hedging to mitigate and remove risks such as longevity or inflation
- We help companies minimise the impact of pension schemes and trustees in corporate restructuring/refinancing, carry out due diligence and support in preparing for sale or IPO
- We also support companies with accounting for pension arrangements, and dealing with changing accounting standards
What's in it for you?
- Cost savings - reduce cash contribution requirements and P&L charge
- Reduce volatility - in funding deficit, contributions and accounting figures
- Reduce risk from pension liabilities
- Increase employee motivation
- Comply with legislative requirements
- Improve or strengthen working relationship with pension fund trustees (and Pensions Regulator)
- Our team combines deep technical pensions and actuarial experience with a breadth of commercial and business understanding and market insight
- We advise a significant portion of the largest private sector pension schemes, and have extensive industry wide knowledge through our corporate, audit and M&A role
- KPMG develops and delivers bespoke strategies, to meet financial objectives and wider business objectives such as HR and reputational considerations
- We helped a FTSE 100 client to implement a limit to pensionable salary increases. This improved their balance sheet by £200m+ and reduced future costs
- We helped a FTSE 250 client design and implement a transfer value exercise which effectively discharged about 75 percent of its pension liabilities, enabling the company to reduce its pension deficit and pay dividends
- A high street retailer was at risk of insolvency due to trustee cash demands. We devised a forward thinking compromise arrangement which eliminated £30m deficit and enabled the business to prosper
- We helped a FTSE 100 client to complete a pension scheme buy-out transaction which secured the pensioner liabilities while retaining exposure to growth assets to meet the non pensioner liabilities
- Following a merger, a client wanted to harmonise its DC pension arrangements. We designed and implemented a new DC scheme which encouraged pension savings, reduced running costs and made savings though salary sacrifice and supplier rebroking