Who are we
Lorica's Actuarial & Risk Management (ARM) team pecialises in providing employers with advice and support on how to manage, reduce or eradicate the risks associated with operating defined benefit (DB) and defined contribution (DC) trust based schemes. Put simply, we aim to help employers solve their pension issues.
DB schemes have for many years played an important part in employee benefit packages and have been taken for granted by many. The ever increasing legislative burden surrounding pension schemes, people living longer, taxation changes and the exacerbation of these issues caused by recessionary influences, have led to DB schemes (and other trust based arrangements) becoming more unpopular, with an increasing trend in employers closing schemes to new members and accrual.
Indeed, many employers have legacy schemes which pose significant financial risk and constitute a substantial portion of the overall employee benefit spend, sometimes with little or no benefit for their existing employees, who continue to add value to the business. Advisory fees can be substantial just to ensure the sustainability of these schemes and we
can help you to reduce or dispense with these fees. Consequently, DB schemes are incompatible with modern employee benefit packages and Lorica recognises this conundrum. ARM aims to deal with the risks and issues surrounding DB schemes and other trust based arrangements in an effective and refreshing way. This helps to make DB schemes fit for purpose, not just in the context of an employee benefit package, but also as part of an employer's wider business plans.
Main areas of expertise
The main areas where ARM can provide help, support and advice to employers are:
• Pension scheme restructuring - helping employers to simplify their pension schemes and make them more cost efficient
• Corporate pensions advice - providing employers with tactical and strategic advice, as well as a second opinion on trustee advice
• Surrogate pensions manager - many companies have legacy pension schemes where there is nobody in the business that has the experience or the resource to manage them - we can help
• Benchmarking - adviser and administrator's fees can be substantial just to ensure that a pension scheme is compliant. We can conduct a market review to ensure that employers get the best deal
• De-risking - helping employers to manage, reduce and eradicate the risks associated with their trust
based arrangements
Trusteeship and Governance
Lorica recognises that employers with contract based pensions and trustees also require support and guidance and this is provided by the Trusteeship and Governance (TAG) team that is complementary to ARM. TAG helps to ensure that employers and trustees are fully compliant and achieve an exacting level of governance.
Having such a complementary team structure in place, facilitates collaboration between scheme sponsors and trustees and helps with the implementation of any risk management plan.
To speak to one of our specialists call 0845 218 3000 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it
