K3 Advisory has launched a new buy-in to buyout service specifically aimed at smaller and medium-sized schemes.
This service, which was previously only available to existing K3 clients, will assist trustees and insurers with moving schemes through the transition period from buy-in to buyout, and the ultimate wind-up of the scheme. This includes help with data cleansing and premium calculation, including issues that may arise around GMP equalisation.
K3 Advisory is a specialist independent bulk annuity and consolidator advisory business. It offers endgame advisory services to the fiduciary management market.
K3 Advisory partners and head of buy-in to buyout services Andrea Mendham says: “Many schemes have recently found themselves in a financially strong position and have been able to pursue a buy-in contract with a bulk annuity insurer – this is brilliant news for trustees, sponsors and members.
“However, after the buy-in contract is signed, the process for moving to buyout – via data cleansing, balancing premium calculation and issuing individual policies – can be a long and neglected road. If not carefully managed, this phase can end up lasting many years, with trustees at risk of breaching their contractual terms for the data cleanse.
“Trustees and schemes have enough to think about and being able to outsource certain aspects of this important phase is a valuable time cost efficiency. It comes down to efficient and proactive project management, coupled with the expertise and resource to complete specific data and benefit rectification work, or actuarial calculations such as GMP equalisation.
“Getting these done greatly reduces the length (and headache) of the data cleansing phase, saving valuable time and cost for the trustees and sponsor and allowing them to establish full security for scheme members as quickly as possible.”
Mendham adds that this tailored services is specifically designed for smaller schemes: “Our status and expertise with small scheme matters means we are in a position to undertake these tasks and move schemes through this phase quickly and seamlessly.”
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