Winding up practical issues

Question 1

Investment

Answer 1

• Aim to reduce risk of funding level deteriorating – most likely to happen if there is investment mismatching
• Solution – if annuities are to be purchased then bonds could be used to match annuity prices
• This won’t be exact though, so need to progress windup as quickly as possible

Question 2

Data

Answer 2

• Gather and check scheme membership data to ensure data is complete and accurate so that correct benefits are provided
• Take appropriate action if not = increases time/cost of wind up

Question 3

Communication

Answer 3

• Communicate to members that scheme is winding up and how they will be affected
• Members need to be given opportunity to ask any questions they have about how the wind up will affect them