The Evolving Endgame

Online in Zoom

Thursday 5^th October 2023

13:00 – 17:15 BST

Sponsored by

New Choices Facing DB Pension Schemes

Striking new initiatives have emerged from the DWP to promote greater choices for DB pension scheme trustees. Among these are the promotion of greater investment choices for pension savers, especially towards alternative assets, increased consolidation, the strong endorsement of the superfund solution and the generation of DB surpluses to the benefit of sponsors and pensions providers as well as members.

Together with the Mansion House Reforms, these have the potential to profoundly alter the investment and governance arrangements for DB schemes across the industry.

Delegates may expect a candid debate on the challenges and opportunities that key market participants have identified as a result of the new environment, the actions they are taking, and the expected outcomes. In common with all SGPE Masterclasses, the event will be highly interactive, with participants encouraged to engage proactively throughout.

Chair

Keynote Speaker

Agenda

Devil's Advocates

Fiona Brown, Group Head of Pensions, Rolls-Royce Group
Sofia Perkonigg, Trustee Director, UBS Pension Scheme
Julie Richards, Group Director of Pensions, Walgreens Boots Alliance

A panel of Devil’s Advocates will be on duty for the course of the afternoon.

They will be available to pose challenging questions to any of the conference speakers when invited to do so by the Moderator of each session. They will provide an end of day summary of the main learning and action points from the conference.

13.00 – 13.15

Meet & Greet

13.15 – 13.30

Welcome & Introduction

Masterclass Chair:
Mark Hedges
Trustee Director
Nationwide Pension Fund

Programme Director:
Stephen Glover
Director
SG Pensions Enterprise

13.30 – 14.00

Keynote Address: The New Policy Environment for DB Pensions

Fiona Frobisher
Deputy Director of DB Scheme Policy
Department for Work & Pensions

This Masterclass is held exactly a month after the end of submissions on the call to evidence of a raft of new policy initiatives designed to breathe new life into DB pensions.

To set the scene for the debates to follow, a leading government spokesperson will describe the thinking behind these initiatives, how they came about, preliminary conclusions from the responses received and the intended outcomes for the industry.

There will be an opportunity for extensive Q&A with delegates.

14.00 – 14.40

Panel Discussion: The Practical Consequences of the Government's DB Initiatives

Moderator:
Mark Hedges
Trustee Director
Nationwide Pension Fund

Adolfo Aponte
MD Risk Solutions
Cardano Advisory

Tim Dougall
Head of Delegated Solutions
LGIM

Edi Truell
Director
Pension Superfund Capital

A panel of leading DB stakeholders will explore the practical implications of the proposed new initiatives and expanded range of choices proposed by the government.

They will discuss whether the DB Funding Code is dead and what will replace it; whether run-on and superfund strategies have become more attractive relative to insurance solutions, also in light of the gateway test; whether greater investment in UK productive capital makes fiduciary sense, and also how this reconciles with the government’s stated ambition to support the gilt market; the potential changing role of the PPF; capital capacity constraints for both insured and superfund solutions; and whether pension trustees have the skills and capability to make the most effective investment choices to achieve the best endgame result for their scheme.

This session will be highly interactive and informative for DB scheme executives and trustees weighing up the options facing them.

14.40 – 15.05

Presentation: Alternative Risk Transfer Approaches

Russell Lee
Head of Insurance Solutions
M&G Investments

To date, insurance buyout via bulk annuities has been pretty much the only game in town when trustees decide to transfer the risk of meeting pensions liabilities to an external provider.

Our speaker will discuss other solutions which have been developed that hold out the promise of being less onerous, less expensive and potentially offering greater investment returns to the greater benefit of members and scheme sponsors.

15.05 – 15.20

Coffee at Home & Online Networking

15.20 – 15.25

Introduction to Discussion Groups

15.25 – 16.05

Expert Discussion Groups

Group 1: On Balance Sheet Solutions

Facilitator:
Ian McKinlay
Director – Pegasus Investment Services
Law Debenture

Lead Discussants:
David Barnett
Partner
Barnett Waddingham

George Allen
Chief Investment Officer
Capita Pension Solutions

Andrew Krousti
Head of Pensions
Capgemini

Themes:

The benefits of remaining open (for those who can afford it)
How to “right-source” your scheme (internal governance vs fiduciary management)
DIY investment approaches vs contingent assets vs capital-backed journeys vs buy-ins
What do self-sufficient investment portfolios look like under the new government initiatives?
Will CDC be a useful route for open schemes?

Group 2: Off Balance Sheet Solutions

Facilitator:
Henry Tapper
Chair
AgeWage

Lead Discussants:
Adam Davis
Managing Director
K3 Advisory

Shalin Bhagwan
Chief Actuary
Pension Protection Fund

Steve Hodder
Partner
LCP

Becky Wood
Trustee Director
Vidett

Themes:

What constitutes risk-transfer ready?
How to get to the head of the queue
Negotiating the best deals for trustees, members and employers
What will make consolidation take off?
Transitioning assets efficiently
Should the PPF have a new and expanded role as a non-lifeboat consolidator?

16.05 – 16.15

Feedback from Discussion Leaders

Ian McKinlay
Director – Pegasus Investment Services
Law Debenture

Henry Tapper
Chair
AgeWage

The Facilitators will report back on the main points covered and the salient conclusions reached in their respective discussion groups.

16.15 – 16.55

Panel Discussion: Managing Surpluses – How Creative Can DB Schemes Get?

Peter Ballard
Head of Funding
Railpen

Callum Duffy
Solutions Designer
Insight Investment

Kenneth Ettles
Investment Principal
Aon

Amish Tanna
Head of European Pension & IR
Goldman Sachs

Prior to the new DWP initiatives, there has been little incentive for DB trustees and scheme sponsors to pursue pension surpluses. Now, there could be gains all round in terms of securing and even increasing member benefits, potentially lowering contributions and even returning funds to sponsors.

An expert panel will discuss the means by which DB trustees may increase the likelihood of surpluses in their schemes, the investment strategies which will be the most effective, and how creative they will be allowed to be in disbursing surplus returns.