1. MANAGING RISK
AND LIABILITIES IN
PENSION SCHEMES
ELIZABETH GANE
Director
+44 (0)121 393 0252
elizabeth.gane@gowlingwlg.com
ADAM BUSHBY
Partner
+44 (0)20 7759 6515
adam.bushby@gowlingwlg.com

2. Managing risk and liabilities in pension schemes
1
Finding the best solution
MANAGING RISK AND
LIABILITIES IN PENSION
SCHEMES
Employers need to take proactive steps to manage risks and liabilities in their
defined benefit pension schemes. With a range of options and strategies available,
this can seem daunting. We help simplify the path ahead and provide clear
recommendations and cost effective advice throughout.
Many employers have reacted to the need to manage liabilities by
closing their DB pension schemes to future accrual.
Others have tried to reduce the build-up of liabilities by making
their DB schemes less generous – reducing the rate of accrual,
moving to CARE or increasing member contributions.
Traditional options such as closing schemes to future accrual
do little about past service deficit issues and volatility, so our
experienced advisers will help you consider the less aggressive,
softer options that can also reduce or eliminate past service
liabilities.
METHODS OF CUTTING
PENSION COSTS AND
MANAGING RISKS AND
LIABILITIES
Reduce final salary
accrual rate
Close scheme to future
accrual
Increase member
contributions
Move to CARE or DC for
future service
Retirement options
Early retirement
schemes
Enhanced transfer value
(ETVs)
Pension increase
exchanges (PIEs)
TRADITIONAL METHODS
OF REDUCING PENSION
COSTS
SOFTER OPTIONS FOR
REDUCING PENSION
LIABILITIES

3. Managing risk and liabilities in pension schemes
2
Next steps
Let us help you agree the best options and strategies for your
business. You can rely on our considerable experience, resources
and skills to support you on any liability management exercise. To
discuss your options please see contact details on the first page.
The world of pension arrangements is
full of challenges and opportunities. To
stay ahead, you need clear, unequivocal
and cost-effective advice, from experts
who not only understand but anticipate
your needs.
With technical excellence as a given,
Gowling WLG's pensions experts provide
commercial, jargon-free solutions. The
size and depth of experience of the team
means we're able to resource your matter
efficiently and effectively, with the ability
to scale up or down in accordance with
your objectives and timelines.
Expect a comprehensive approach, with
the ability to tackle your project from
every legal angle. Used to advising both
trustees and sponsoring employers, as
well as insurance companies, actuaries,
consultants and industry bodies, you'll
get the whole picture from Gowling WLG.
“They are head and shoulders above
the rest.
”
“We see them as the leaders and they
are doing the most innovative work.
”
“They are pragmatic, very easy to deal
with and solution finders.
”
—— (Pensions clients, quoted in Chambers UK
2015/16)

4. GOWLING WLG �UK� LLP
T +44 �0�370 903 1000
gowlingwlg.com
Gowling WLG (UK) LLP is a member
of Gowling WLG, an international law
firm which consists of independent and
autonomous entities providing services
around the world. Our structure is explained
in more detail at www.gowlingwlg.com/legal