Mercer | Reducing Pension Scheme Risk

Reducing Pension Scheme Risk by using Liability Management Exercises

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Reducing Pension Scheme Risk
Calendar26 September 2017

Reducing Pension Scheme Risk by using Liability Management Options

There are many cost-effective liability management options available to help companies reduce the volatility of their DB scheme costs and move schemes towards the trustees’ and company’s goal of self-sufficiency or buyout.

Two liability management options being used increasingly in Irish DB schemes are:

  • Enhanced transfer value (ETV) exercises, in which members agree to an enhanced transfer value in lieu of their DB pension promise, and
  • Pension increase exchange (PIE) exercises, in which pensioners agree to forego an entitlement to future pension increases in exchange for a higher flat pension today.

To find out more on how liability management options could help reduce pension risk in DB schemes, download the following whitepaper “Reducing Pension Scheme Risk by Using Liability Management Exercises”


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