Close Menu
    What's Hot

    Morrisons Retirement Saver Plan Completes Bulk Purchase Annuity Buy-In With Aviva

    28 May 2025

    Yellow Pages Limited Purchases Group Annuity Contracts From BMO Life Assurance Company

    22 May 2025

    Life ILS Conference 2025

    20 May 2025
    Facebook X (Twitter) Instagram
    Instagram LinkedIn X (Twitter)
    Life Risk News
    • Home
    • Features

      New Data Shows the Extent to Which American Seniors Are Missing Out by Lapsing or Surrendering their Life Insurance Policy

      14 May 2025

      Buy-Ins To Buy-Outs Appear Stalled As Deal Complexity, Administration Resources Pose Obstacles

      14 May 2025

      Is Servicing an Overlooked Source of Life Settlement Alpha?

      14 May 2025

      Q&A: Shelly Beard, Managing Director, WTW

      14 May 2025

      Longevity Tech to Emerge as Distinct Sub-Sector of Venture Capital Market?

      14 May 2025
    • Commentary

      UK Life Insurers to Benefit from Robust Bulk Annuity Market in 2025

      14 May 2025

      The Power of Uncorrelated Diversification During Market Volatility

      14 May 2025

      Overseeing BPA Growth Safely

      14 May 2025

      Could Climate Change Cause the Buy-In Market To Collapse?

      10 April 2025

      ICS vs Solvency II: Comparing Risk Corrections for Illiquid Liabilities

      10 April 2025
    • Events
    • Magazine
    • News

      Morrisons Retirement Saver Plan Completes Bulk Purchase Annuity Buy-In With Aviva

      28 May 2025

      Yellow Pages Limited Purchases Group Annuity Contracts From BMO Life Assurance Company

      22 May 2025

      Andrew Limited Pension and Life Assurance Plan Completes Bulk Annuity Transaction With Aviva

      15 May 2025

      Life Insurance Settlement Association Publishes Latest Market Data Collection Survey Results

      13 May 2025

      UK Aggregate Defined Benefit Pension Fund Surplus Down Again in April

      12 May 2025
    Subscribe
    Life Risk News
    Home » UK Charities See Significant Rise in DB Pensions’ Funding Levels and Income

    UK Charities See Significant Rise in DB Pensions’ Funding Levels and Income

    Industry News 19 August 2024Greg WintertonBy Greg Winterton
    Twitter LinkedIn Email
    Share
    Twitter LinkedIn Email

    The combined reserves of the largest 40 charities in England & Wales that sponsor defined benefit pensions schemes rose to £50bn in 2022, according to Hymans Roberson’s annual report on DB pension funding in the charitable sector.  

    The analysis also shows that there’s been a 20% rise in average funding level of the DB schemes since 2019 driven predominately by falling pension scheme liabilities. This is at a time when charity income is also rising, now exceeding pre-Covid levels. 

    The 2024 report assesses the charities’ DB pensions exposures by looking at reserve levels, income, and DB pension contributions. It shows that as a result of these increases, buy-out of the pension schemes is now closer than ever before for many charities. So, they now have the opportunity to pass the pension scheme risk onto an insurer and off the charity balance sheet. 

    “Charities have seen a significant turnaround in funding over the last 5 years, with a particular jump in funding level over the last year. Although some DB Schemes may have faced some challenges because of the market volatility at the end of 2022, many charities are now seriously able to consider buy-out of their DB pension scheme with an insurer,” said Heather Allingham, Actuary & Head of Pensions Consulting for Charities at Hymans Robertson. 

    “2024 continues to be busy for risk transfer and charities should engage with their pension scheme trustees to re-assess their end game plans for their schemes. 

    “Charity income is also on the up, hitting £15bn this year, up from £12.6bn in 2019. Although we expect most charity schemes will be targeting buy-out, this rosier financial picture may prompt some charities to consider if run-on is a viable option for them, particularly those charities with larger schemes.  Charities should be engaging with their pension scheme trustees to plan their end-game strategy and ensure the scheme is managed appropriately with that in mind,” she added. 

    “Finally, charities and their pension scheme trustees should be preparing for the new funding code of practice with a particular focus on how to best measure the covenant strength of the charity. We would suggest that charities might want to focus on their affordability levels and cashflow reliability period.”

    2024 - August Longevity and Mortality Risk Transfer Longevity Risk News: August 2024 Pension Risk Transfer
    Share. Twitter LinkedIn Email

    Related Posts

    Morrisons Retirement Saver Plan Completes Bulk Purchase Annuity Buy-In With Aviva

    28 May 2025

    Yellow Pages Limited Purchases Group Annuity Contracts From BMO Life Assurance Company

    22 May 2025

    Andrew Limited Pension and Life Assurance Plan Completes Bulk Annuity Transaction With Aviva

    15 May 2025

    Life Insurance Settlement Association Publishes Latest Market Data Collection Survey Results

    13 May 2025

    Comments are closed.

    Most Popular

    New Data Shows the Extent to Which American Seniors Are Missing Out by Lapsing or Surrendering their Life Insurance Policy

    14 May 2025

    Buy-Ins To Buy-Outs Appear Stalled As Deal Complexity, Administration Resources Pose Obstacles

    14 May 2025

    Is Servicing an Overlooked Source of Life Settlement Alpha?

    14 May 2025

    UK Life Insurers to Benefit from Robust Bulk Annuity Market in 2025

    14 May 2025
    Ad

    Your trusted source for capital markets participation in Life Risk

    X (Twitter) Instagram LinkedIn
    Life Risk
    • About Life Risk News
    • Get In Touch
    • Our Team
    • Copyright Notice
    • Terms and Conditions
    • Privacy Policy
    • Sitemap
    Coverage
    • Home
    • Features
    • Events
    • Commentary
    Subscribe

    Type above and press Enter to search. Press Esc to cancel.

    We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
    Cookie SettingsAccept All
    Manage consent

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
    CookieDurationDescription
    cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
    cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
    cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
    cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
    cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
    viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
    Functional
    Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
    Performance
    Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
    Analytics
    Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
    Advertisement
    Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
    Others
    Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
    SAVE & ACCEPT