Sessional meeting by the Capital Backed Funding Arrangements Working Party
Scheme funding levels have risen dramatically for many schemes in 2022-23. And yet finishing the journey while managing the risk of losses on that journey is highly desirable, but may be difficult to achieve in practice. While an insurance buyout may not be desired or possible, and a low dependency strategy is difficult to maintain in practice, there remains a risk that benefits will not be secured in full, which with hindsight could have been avoided. A diverse set of arrangements has been developed by a number of providers that draw on external capital to aid trustees and corporates to meet scheme funding ambitions. This is a new development in the market. In this paper, we survey the role and key features of these arrangements and set out a framework for how their value might be assessed.
Chair: Clarence Er.
Speakers: Iain Pearce, David Barnett and Claire van Rees