The pension standard every Board should understand
TAS 300 shapes the actuarial advice behind some of the largest financial decisions your organisation will make. Understand it, and turn a well funded Defined Benefit scheme into a corporate asset.
potentially redeployable*
The standard, and what it means
Practitioners providing advice to a governing body or an employer which is considering a bulk transfer must consider the following:
- credible alternatives to the potential transaction for the long-term provision of members' benefits. Practitioners must consider whether the following alternatives are credible: a bulk transfer to a superfund or an insurer and retaining the liabilities within the existing pension scheme potentially with additional funding and/or security;
- any material impact on the protection provided for members' benefits in the event that the benefits are unable to be paid as intended;
- any changes in the material risks to the benefits of the different classes of members; and
- any changes to the governing body's ability to make decisions which affect the level of members' benefits.
Practitioners providing advice to a governing body or an employer which is considering a bulk transfer must use as much relevant information as is sufficient and must make use of support from third parties where they judge it necessary in order to obtain sufficient relevant information. Practitioners who have relied on input from a third party should understand how the input affects their technical actuarial work.
Many Finance Directors have never heard of TAS 300, yet it governs the advice behind some of their largest financial decisions.
Our free Executive Guide explains what your Board should know, in plain language.
Better funded schemes, bigger decisions
There are now a range of options available that aren't necessarily being brought to Boards by the consultants. A range of solutions have been developed that provide credible alternatives to expensive pension buy ins and buy outs. Understanding them is becoming a core board responsibility.
From a legacy liability to a corporate asset
Stronger funding positions are changing the question from "can we get to buy-out?" to "which strategy delivers the best long term outcome?"
Run the scheme on
Retain the scheme and its assets, with a long term run on strategy.
Buy-ins and buy-outs
Insure some or all liabilities through a bulk annuity.
Superfund transfers
Move the scheme to a consolidator that pools risk across employers.
Capital-backed arrangements
Bring in third party capital to support the long term goal and allow sponsors and members to benefit.
Let surplus benefit sponsors and members
Consider the viability of the above four options to allow surplus to benefit the sponsors and members.
side by side
Bring the right questions to the table
TAS 300 turns a technical actuarial standard into a strategic Board discussion. Our executive teach-ins help Sponsors and Trustees weigh the options with clarity and confidence.
Arrange a teach-in →One decision, five strategies
Every option supports a different set of corporate objectives. A starting point for the conversation, not advice on any particular scheme.
| Corporate objective | Run-on | Buy-in | Buy-out | Superfund | Capital- backed |
|---|---|---|---|---|---|
| Increase the security of members' accrued benefits | – | ✓ | ✓ | ✓ | ✓ |
| Reduce balance sheet volatility | – | ✓ | ✓ | ✓ | ✓ |
| Reduce the likelihood of further sponsor funding | ✕ | – | ✓ | ✓ | ✓ |
| Align scheme investments with your corporate ESG strategy | ✓ | – | ✕ | – | ✓ |
| Potential for members to receive more than their promised pension | ✓ | ✕ | ✕ | – | ✓ |
| Potential for future surplus to benefit the sponsoring employer | ✓ | ✕ | ✕ | ✕ | ✓ |
| Potential to support future Defined Contribution pension funding from surplus* | ✓ | ✕ | ✕ | ✕ | ✓ |
| Provide a clear long-term endgame strategy | – | – | ✓ | ✓ | ✓ |
| Retain flexibility as circumstances evolve | ✓ | – | ✕ | ✕ | ✓ |
| Maintain trustee control and governance | ✓ | ✓ | ✕ | ✕ | ✓ |
*Subject to legislation, scheme rules, tax treatment and the circumstances of the scheme.
The Corporate Sponsor's Guide to TAS 300
A concise briefing on what every Board should know before approving a Defined Benefit pension endgame strategy.
- What the TAS 300 regulations are
- Why it matters to corporate sponsors
- The questions every Board should ask
- A comparison of endgame strategies
- Additional executive resources
Get your free copy
Tell us where to send it. The guide arrives in your inbox in moments.
We will use your details to send you the guide and relevant information about TAS 300. Unsubscribe at any time. See our Privacy Policy.
Experienced specialists, on call
TAS 300 connects corporate sponsors with the right expertise at the right time.
Tom Howarth
Tom leads engagement with corporate sponsors, arranging executive teach-ins and introductions to specialists across the pensions endgame landscape.
TC Jefferson
TC works with sponsors and their advisers on strategy and executive search across the insurance and pension investment market.
An information resource for corporate sponsors
This is an information resource created by The Plenum Group to help corporate sponsors better understand the implications of TAS 300 and the evolving landscape of Defined Benefit pension endgame strategy.
It provides educational resources, executive briefings and access to experienced specialists where appropriate.
The next major pension decision is a Board decision. Be ready for it.
Download the free Executive Guide, or speak to the TAS 300 team about an executive teach-in for your Board.