Spence & Partners Limited

Last night Angela Burns, Caitlin Watson, David Potts and Grier MacBeth hosted an evening of curling with our clients. We were joined by curling professionals, Hammy McMillan, who is a 2022 Winter Olympics, Silver medalist curler and currently the lead for Team Mouat, the current number one seeded team in the world! Along with Ross Paterson, a World and European bronze medalist curler and coach for Team GB's women's team, who are aiming to qualify for the upcoming Winter Olympics! Before the curling kicked off, they shared some valuable insights on goal setting, teamwork, and the preparation required for elite competition, including their journey towards the Olympics. Their talk set the tone for the evening, reminding us all of the importance of focus and collaboration, both on the ice and in our professional lives. Everyone embraced the spirit of friendly competition, and it was amazing to see how quickly the game became competitive! 👀   We would like to thank everyone who attended: Mark Costello, Maureen Burns, Lukshmi Selvarajah, James Keith, Martyn Shaw, Alison Shackleton, Ruth Tobias, Mike Thirlwell, Richard McNair and Maxwell Oliver.   #curling #pensions #events #teamwork #communication

LGPS Exit Credits – Case Study: The Outsourcer   Navigating the complexities of Local Government Pension Scheme (LGPS) exit credits can be challenging, especially with varying roles and structures at play. One such scenario is The Outsourcer.   📌 Who is The Outsourcer? In this scenario, the employer participates in the LGPS through an outsourcing contract with a local authority. Here, the pension costs are passed through to the authority, meaning that the outsourcer itself does not directly bear the risk of pension cost fluctuations.   If pension costs rise, the outsourcer simply charges the increase back to the local authority - saving them from any financial risk.   💸 What Does This Mean for Exit Credits? Since the outsourcer hasn’t been exposed to any financial risk during its participation in the LGPS, a refund would be very unlikely.    🔍 Key Takeaway: For employers involved in outsourcing contracts, it's important to recognise how Funds might exercise their discretion where there has been no direct financial exposure.   This is a prime example of why understanding your specific contract structure within the LGPS is critical when planning an exit.   Check out Alistair Russell-Smith's Bulletin 59 to understand how LGPS exit credits can be influenced by specific employer arrangements and contract structures.   🔗 https://lnkd.in/eMiAMpc8   #LGPSExitCredits #PensionSchemeInsights #OutsourcingContracts #EmployerGuidance

Are you a trustee or CFO of a smaller DB pension scheme?   Join us at the Pensions Management Institute (PMI) End Game Conference on 29th October, proudly sponsored by Spence & Partners.   On the day you'll explore effective long-term planning strategies for Defined Benefit pension schemes. Whether you're dealing with assets of up to £175 million or managing up to 1,000 members, this conference is designed for you.   Why Attend? ✔ Gain invaluable insights into the complexities of managing smaller DB schemes.   ✔Engage in in-depth discussions with experts across the pension sector.   ✔Explore practical strategies - like consolidation, insurance buyout, and run-on options, to navigate the end game of your pension scheme with confidence.   The Spence team and experts throughout the industry will deliver sessions throughout the day, offering expert insights into end game strategies and the future landscape of DB pension schemes.   Register now! 🔗 https://lnkd.in/ekKdDkzw   #DBPensions #PMIConference #PensionSchemeStrategy #Trustees #CFOs #PensionSolutions

Case Studies on LGPS Exit Credits   Understanding how the new LGPS exit credit rules impact you is crucial, and we're here to make it easier.   Recently, in partnership with Burges Salmon LLP, we hosted a webinar on these changes, exploring real-world case studies that highlight the value of these new approaches.   Key Case Studies: 1️⃣ The Outsourcer: Participates without pension risk, making an exit credit unlikely.   2️⃣ The Charity: Fully exposed to pension risk, potentially eligible for a significant exit credit.   3️⃣ Council Guarantees: How different guarantee structures can reshape exit credit calculations.   Why This Matters: These examples illustrate the challenges of handling LGPS exit credits. They clarify how different decisions can impact outcomes and provide guidance on managing these complex situations effectively.   Stay ahead of these changes - understand their potential impact on your LGPS participation and develop the right strategies.   Case studies: 🔗 https://lnkd.in/exUmbHrk   #LGPSExitCredits #PensionSchemes #EmployerGuidance #CaseStudyInsights

✉ Our newsletter helps you understand the big pensions issues. Hitting your inbox with regular insight, analysis and service news to make staying informed even easier. Featured so far: 📊 Our latest report estimates £300 million of potential savings across the DB market and summarises existing solutions for accessing these savings. 🔍 The DB Funding Code is scrutinised with tips for both trustees and employers. 💬 Our industry expert Martyn Phillips tackles the latest developments in the buy-out market. Coming soon: - Learn more about whether total automation should be developed and where the boundaries lie. - Register for our latest industry event tackling small scheme end game solutions, partnered with the Pensions Management Institute (PMI). - Assess whether your scheme is truly ‘dashboard ready’ and how to interrogate your administrator to find out. 🔗 Sign up and stay informed: https://lnkd.in/eG7dAQuR #Newsletter #PensionNews #StayInformed

Are You Ready for the New DB Funding Code?   The landscape for Defined Benefit (DB) pension schemes is changing, and it’s crucial for trustees and sponsors to stay ahead. With the Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations 2024 now in force and the final draft of the DB Funding Code laid before Parliament, significant regulatory shifts are on the horizon.   These changes are designed to enhance the governance, funding, and investment strategies of DB pension schemes, aiming to provide greater security for members while ensuring schemes are financially resilient.   What does this mean for you?   The new regulations bring more stringent requirements and expectations, which means it’s time for trustees and sponsors to take proactive steps to ensure compliance and protect their scheme's future.   Key Actions for Trustees and Sponsors:   ✅ Review Funding Strategies Now is the time to thoroughly review your current funding and investment strategies. Ensure they align with the requirements of the new DB Funding Code, particularly the Fast Track parameters. These parameters offer a standardised approach for achieving funding targets with reduced regulatory intervention, BUT only if they are met fully.   ✅ Engage Actuaries and Advisors: Close collaboration with your scheme actuary and advisors is essential to navigate these changes. Whether opting for the Fast Track route or developing a Bespoke approach, a clear understanding of the new expectations is critical. Work with your advisors to evaluate the potential impact on your scheme's funding position, investment strategy, and recovery plans.   ✅ Stay Updated on Regulatory Changes: The regulatory landscape is dynamic, with the Fast Track parameters set for annual reviews to reflect evolving market conditions. This flexibility means trustees and sponsors must stay vigilant and keep up-to-date with any changes to the parameters and guidelines. Regularly monitoring updates from the Pensions Regulator will ensure your scheme remains compliant and can quickly adapt to any new requirements.   What’s Next? Start by evaluating your current position against the new regulatory framework and identifying areas where adjustments are needed. Taking action now will help you avoid compliance issues but ensure your scheme is well-positioned for the future.   Explore Matthew Toal's detailed blog for a comprehensive overview including what both trustees and sponsors should be doing next.   🔗 Read the full blog post: https://lnkd.in/emWx7j5w   #Pensions #DBFundingCode #TrusteeSupport #ActuarialServices #RegulatoryCompliance

Navigating the New Fast Track Parameters in the Final DB Funding Code! As the regulatory environment for pensions continues to evolve, The Pensions Regulator (TPR) has unveiled the Fast Track approach within the final DB Funding Code. Offering a simplified path for Defined Benefit (DB) schemes to meet their funding goals. So, what exactly does the Fast Track approach entail, and why should trustees and sponsors take note? 🤔 Let’s break down the key components: 1️⃣ Low Dependency Funding Basis Fast Track uses a discount rate capped at gilts + 0.50% p.a., providing a simple, low-risk framework for managing funding with strong interest rates and inflation protection. 2️⃣ Recovery Plan Lengths Stricter recovery plans are set promoting earlier funding stability and reducing risks. 3️⃣ Annual Reviews Parameters will be reviewed yearly to stay current with market changes, allowing trustees to maintain regulatory standards. What Does This Mean for Trustees and Sponsors? It's crucial for trustees and sponsors to thoroughly assess their current funding strategy and determine if Fast Track aligns with their scheme's unique needs and objectives. 🔍 Key Actions to Consider: 🔵 Review Your Current Strategy: Evaluate how your scheme’s current funding and investment strategy aligns with the new Fast Track parameters. 🔵 Engage with Your Actuary and Advisors: Work closely to understand if Fast Track or a bespoke approach is better for your scheme, and prepare for any necessary adjustments. 🔵 Stay Updated and Informed: As Fast Track parameters will be reviewed annually, staying on top of these changes is essential to remain compliant. Ensure your scheme is ready! Explore Matthew Toal's detailed blog for a comprehensive overview including what both trustees and sponsors should be doing next. 🔗 Read the full blog post: https://lnkd.in/emWx7j5w #Pensions #DBFundingCode #RegulatoryUpdates #Actuarial #Trustees #Sponsors

Stay Ahead of Emerging Pension Trends at the PMI End Game Solutions Conference! For trustees and CFOs staying ahead of emerging pension trends and anticipating future challenges is essential. Join us at the upcoming Pensions Management Institute (PMI) End Game Solutions Conference this October, where industry leaders will share their vision for the future of pensions, discussing key developments, innovations, and the evolving regulatory landscape. We’re thrilled to announce that Martyn Phillips, Risk Transfer Lead at Spence, will be sharing his expert insights at the event! What can you expect? 🤔 ✅ Martyn’s session, “Vision for the Future: What’s Next for Pensions?” will provide a roadmap to navigate the evolving landscape of DB schemes. Gain valuable insights into risk transfer strategies and learn the next steps to future-proof your scheme. Secure your spot now to hear directly from Martyn and other leading experts, and ensure you’re prepared for the future of pensions. 🔗 Register here: https://lnkd.in/ekKdDkzw #PensionSchemes #DBPensions #RiskManagement #Finance #Networking #Trustees #CFOs #EndGameStrategies #PMIConference

On July 29, 2024, The Pensions Regulator (TPR) laid the final draft of the Defined Benefit (DB) Funding Code before Parliament. This crucial document will be laid for 40 sitting days before it comes into effect. Compared to the earlier draft Code, there were several key changes and confirmations. Under the new Funding Code, for the purposes of determining their funding and investment strategy, trustees must determine the following: 1️⃣ Their long-term objective - e.g. run-on, buyout, transfer to a consolidator). 2️⃣ Their low dependency funding target, which will include the funding level they intend the scheme to have reached on a low dependency funding basis at the “relevant date”. 3️⃣ The investments they intend to hold at the relevant date. 4️⃣ Where relevant dates are set in the future, details of the journey plan from the scheme’s current funding position to its low dependency target. Read our latest blog from Matthew Toal to understand the new regulations including his recommended next steps for trustees and sponsors. 🔗 https://lnkd.in/emWx7j5w #Pensions #DBFundingCode #Trustees #Sponsors #RegulationUpdates

Our revamped site is more than just a facelift – it’s a hub where you can dive into Spence’s world, staying ahead of the curve with the latest insights on the ever-changing pensions landscape. Whether you’re looking for expert advice, industry opinions, or valuable resources, our website is your go-to destination. 🔗Explore Spence Now: https://lnkd.in/eUYHzGqr Alistair Russell-Smith puts it perfectly 👇 #Pensions #Consultancy #Innovation #PensionInsights