Strategic Consultancy

Strategic Consulting: Solutions and Advice

The  financial and economic pressures faced by companies and trustees has had a profound impact on pension plans as they seek to manage pension risk and  ensure the long term interests of pension scheme members are safeguarded. 

The impact of defined benefits on company earnings, balance sheets and cash-flow has been significant. It is vital that companies understand the factors that impact these areas and the implications of their long term  obligations. Similarly, defined contributions schemes must be structured in a  way that ensures employees are offered a competitive package of benefits that  will help them prepare for retirement. Without careful management, pension costs and contribution requirements can be volatile - indeed for some schemes, it may be appropriate to consider whether they promise less in the way of benefits but do more to ensure they can meet such promises.  Such decisons are complicated and require a broad-thinking approach which has long-term impact at its core.

At Pi, we adopt an objective, professional and independent approach to our strategic consulting and in so doing, aim to deliver clear advice that reflects the culture, business objectives and associated budget of the company, ensuring a "best value" return for their HR spend whilst managing risk  effectively.  Linking these factors together, we obtain a clear understanding of the company's current pension arrangements and work in partnership with you to ensure that they continue to offer a competitive benefits package that is aligned to the goals that have been identified.

Our strategic consulting offering embraces the following key areas:

• Scheme design, change and implementation   
• Sales, mergers and acquisitions  
• Compliance with legislation and employee benefits  practice  
• Wind up and scheme closure  

Project Example - Flier

This client needed assistance to quickly address its pension deficit problem if the company was to survive and asked Pi to identify the options available to them.  Pi considered what was in the Company’s best interests and gave strategic advice that resulted in an approach being made to the PPF and the Pensions Regulator, using support from other professional advisers where appropriate.  In everything that we did, we at all times had full regard for the interests of employees and the Trustees of the Company's pension scheme.

Pi's involvement took the Company to a stage where an ongoing dialogue with both the PPF and the Regulator was set up to enable a successful transition of the Company's Pension Scheme into the PPF.  This included complex discussions, liaison with Company and Trustee advisers and very tight project management.  The outcome was a successful result "in record time".  Throughout the project, Pi kept all parties and stakeholders fully informed of developments.

The client contacted us to say that: "It would appear that we have achieved a successful conclusion to this project.  'Flier' has the chance to prosper and we have protected jobs, paid our creditors and maintained some value for existing shareholders.  I would like to sincerely thank all at Pi for your efforts on our behalf."