IGG launches Strategic Pension Solutions Centre of Excellence

IGG today announces the creation of a dedicated Strategic Pension Solutions offering, the firm’s latest Centre of Excellence.

The new Centre of Excellence, led by David Farmer, has been formed to support schemes that are navigating the rising complexities associated with surplus distribution, utilisation and other endgame strategies.

Research completed to support the launch of the new group revealed almost one in three (32%) IGG schemes are targeting low dependency or bulk purchase annuity as part of their derisking strategy, and almost three in four (72%) have called for a statutory override to allow ongoing surplus distribution. Analysis from The Pensions Regulator (TPR) identified 3,750 of 5,000 DB schemes as being in surplus on a low dependency basis, with a further 950 approaching the same level of funding.

David Farmer is IGG’s Head of Strategic Pension Solutions, having joined IGG from PwC in 2023. David has 25 years of experience in pensions law and extensive expertise in corporate transactions, as well as advising on alternatives to full scheme buy-outs.

Strategic Pension Solutions is the newest addition to IGG’s established Centres of Excellence, which were first created following the Group’s formation in February 2023. The Centre will set out a clear path for each pension scheme’s future, covering all variables in developing a robust strategy that meets the scheme’s objectives.

David Farmer, Head of Strategic Pension Solutions at Independent Governance Group, explained:

“With an increasing number of Defined Benefit schemes being well-funded or even over-funded, many sponsors and trustees are exploring alternatives to traditional buy-outs and buy-ins with insurers. IGG’s new Centre of Excellence is designed for those schemes where a buy-out or buy-in may not be the optimal solution, necessitating a thorough evaluation of all viable options.

“Our research indicates that despite a robust pensions market, a cautious approach to surplus management remains prevalent. Trustee Directors prioritise maintaining a funding safety margin, adopting a low-risk investment strategy, and ensuring a strong employer covenant. I am thrilled to leverage our expertise to enhance IGG’s existing offering and position our Strategic Pension Solutions unit as a crucial support for sponsors and trustees evaluating all their options”

Andrew Bradshaw, CEO of Independent Governance Group, said:

“The launch of our Strategic Pension Solutions unit is another stand out development for IGG and complements our existing strengths and services. It shows our ability to respond directly to the changing nature of the UK pensions industry and demonstrates our capacity to quickly identify and meet shifts in sector demand.

“Schemes in surplus have in excess of £225 billion in aggregate surplus assets, representing roughly 17% of total DB assets . It is never a case of ‘one-size-fits-all’ when it comes to scheme management, and our new Centre of Excellence will support in the decision-making process where factors at play continue to evolve.”

Key Contact