29 January 2009
Lane, Clark and Peacock (LCP) have revealed that 2008 was the
most popular year ever for pension buyouts. The value of deals
concluded in 2008 was put at £8bn. They predict that similar
levels of activity will be seen for 2009, despite a slow start to
the year. The current slump is expected to have an effect but only
insofar as completed deals will relate to mainly pensioner-only
transactions rather than schemes with active members.
On a similar note Paternoster recently published its buy out
index figures for the end of 2008. The index looks at the cost of
securing the liabilities of deferred and pensioner members of a
typical defined benefit scheme. The net cost of buyouts increased
by 13% for schemes with a high equity investment.
