In recent years many pension funds have been confronted with unanticipated insolvency or funding issues. Increased life expectancy, structural developments in financial markets and pension fund maturation, have contributed to serious, deliberations on the future of pension systems.

The various stakeholders will have to put their efforts in working out a mutually satisfactory arrangement. The challenges are significant however. It requires careful exploration of pension regulation as well as determination of risk attitudes  and ambitions of scheme members and sponsors.  

It is critical to clearly communicate the impact of the restructuring to the various stakeholders concerned. Changes in the benefits and funding structure of a pension plan can after all have profound consequences for the financial situation of participants, retirees, and (corporate) sponsor(s).

Ortec Finance consultants have extensive experience in working with pension funds on such fundamental transitions. They provide pension funds with insight and practical advice taking into account the pension scheme’s policy and its relevant policy instruments. Extensive modeling of the pension fund’s risk environment is essential for the advice; however transitions can be existential reaching beyond mathematical formulas and calculations. Ortec Finance consultants can undertake project management, deliver communications expertise, and help determine the potential opportunities and pitfalls.