From Wimbledon to buy-out - How to beat 'The Queue'!

The Queue at Wimbledon. A British tradition like no other, thousands waiting patiently in line since the early hours in the hope of reaching the promised land - the Wimbledon grounds. What was once a straightforward, fun-filled, picnic fuelled (champagne, strawberries and cream required) process became somewhat more complicated on the first Monday of this year’s tennis Championships. Wimbledon staff being deployed elsewhere meant longer waiting times and even some people having their dreams dashed. A friend of mine was one of the unlucky ones and remarked – “Must be more prepared next year”. That might mean getting in line earlier or better yet, securing a ticket online (if only it were that easy….). Either way, the challenge and the solution drew some striking comparisons (for us anyway…) with the challenges facing pension schemes in the buy-out market.

The buy-out process once required minimal to no queuing, but as demand has grown, we’ve seen an increasing need for schemes to wait in line. Getting into line earlier certainly works here too, but how can you secure your buy-out ticket earlier? Having a process which, well in advance of reaching buy out, tackles the areas trustees and insurers care about most can help you secure your buy-out ticket.

At Citrus we’ve developed a framework to take schemes on a journey to buy-out in a well-managed, fully informed, and cost-effective way:

 Employer communication 

This starts with providing employers with their buy-out deficit and expected term to reach buy-out pricing. Employers can choose how often they receive this information and feed in any factors which might impact the timeline (eg contributions).

 Preparations commence

For those employers where full buy-out funding is approaching, crucial preparations need to start including transaction-ready data, benefit specifications, marital status tracing and investment considerations. Getting this done on time and how insurers would like is key to getting a scheme in the queue.

 Economies of scale

Where we have multiple schemes within Citrus ready to approach the insurance market, we will group them together. This increases the transaction size, making it more appealing to insurers (getting you in the queue) and allows us to share many of the costs (making it more cost efficient for employers).

 Approaching the market

Our relationships with insurers and a smooth, well-tested approach taking schemes to market gives us the advantage over standalone schemes who generally only carry out this process once. We have the experience of multiple transactions and pass on the benefits of this quicker process and lower costs to you.

As insurer demand continues to grow, and capacity for transactions remains a challenge, at Citrus we are fully focussed on helping schemes navigate these challenges. Whilst we can’t promise champagne, strawberries, and cream along the way, we can deliver a great buy-out outcome for members and sponsors.

For further information please get in touch.

This blog is general in nature, it does not provide a definitive analysis of the subject matter covered and may be subject to change. It is not specific to the circumstances of any particular employer or pension scheme. The information contained herein is general in nature, not to be construed as advice and should not be considered a substitute for specific advice in relation to individual circumstances. Where the subject of this blog refers to legal issues please note that Citrus Pensions is not legally qualified to give legal opinions therefore you may wish to obtain legal advice. Citrus Pensions accepts no liability for errors or omissions.