How to talk to members about a bulk annuity purchase

A buy-in or buyout is usually good news for a pension scheme. So why does it feel like a difficult thing to tell members about? Perhaps it’s because members aren’t generally consulted about the process and might feel a bit ignored. The trustees might seem to be handing responsibility to an insurance company – perhaps one the member has never heard of. Trustees themselves might have mixed feelings about this section 32 process. If members don’t understand what’s happening, they could start to worry. Some might think about transferring out. Explaining what you’re doing and why makes it less likely...