Most corporate owners of DB liabilities now recognise that pension risk management is a core issue in managing their corporation’s balance sheet – and, absent some buy-out or fully-hedged and funded solution, will continue to be so for a very long time.

Economically, a DB scheme is the company’s problem — not the trustees’. However, as we know, the company does not manage it per se, and the governance structure of the trustee framework supported by the actuarial and legal profession when combined with the changing legislative and regulative framework make the influencing of scheme direction far more difficult.