LEBC is in discussions with six defined-benefit pension schemes about using enhanced annuity-style mortality information to “substantially” cut the cost of de-risking exercises.
The IFA firm’s individual annuity division, The Retirement Adviser, has been working with companies to produce more accurate, granular information on the mortality profile of pension scheme members.
The Retirement Adviser director Nick Flynn says LEBC has provided mortality information, including figures on how many members suffer from health problems, to seven schemes in the past 12 months, with a further “half a dozen” in the pipeline.
He says: “For a lot of schemes and employers, the mortality assumptions used to value the pension liabilities take no real account of the health or lifestyle of the membership.
“By taking a granular approach and interviewing individual members, we can produce a group mortality profile which more accurately reflects the membership. Schemes can save a substantial amount of money when they are de-risking if they are armed with accurate information.”