Employers accept de-risking responsibility for schemes

The insurer said that 61% of companies surveyed with a turnover of £1m or more accepted sole responsibility or responsibility in partnership with trustees for de-risking, compared to 46% in 2010.

However, MetLife said 42% of employers were unaware of any de-risking strategies when presented with a list of options, reports sister publication Professional Pensions.

The research said 37% of employers were aware of buy-ins , 33% knew about asset allocation, and 28% understood buyouts.

By contrast, 66% of trustees surveyed said they had a plan in place to de-risk their schemes over the next five years, compared to 60% in 2010.

MetLife chief executive Wayne Daniel said: “Employers increasing engagement with pension schemes and acceptance of responsibility is welcome and signifies more collegiate working relationships with sponsors and trustees.

“The industry can take some comfort from the levels of awareness of buy-ins and buyouts but clearly more needs to be done to help employers understand the de-risking options open to them.

“It is expected that the closer working relationship between employers and trustees will be beneficial when exploring solutions and achieving the best outcomes for schemes and their members”.

The survey included 775 employers, 188 of which ran final salary schemes.