Deloitte’s Pension Advisory Services to Treble in 4 Years

Lucas Gilmore, “Big 4″ observer
January 14, 2011 /

To respond to the increasing pension challenges in the public and private sectors, Deloitte will treble the size of its advisory services in the area within the next four years, shelling out £2 billion in asset funding partnerships with further innovation.

The said expansion in advisory services will cover the “funding of pension schemes, benefits strategy for employees and day-to-day pensions operations.”

According to Deloitte, the pension advisory services will also include several disciplines that will bring about expertise across the firm in areas like corporate finance, actuarial, tax, treasury, assurance and Drivers Jonas Deloitte property experts. The number of professionals consisting the advisory services will subsequently become 600 in four years from an initial 200.

Deloitte’s pensions advisory services practice head Tony Clare said their clients from the public and private sectors have always been facing challenges from “reducing pension scheme deficits to ensuring companies’ pensions systems” as a result of the UK government’s reform in taxation.

“We’ve created a cross-firm team with the knowledge and experience to work with companies on solving every aspect of these challenges,” Clare said.

In 2010, Deloitte has launched its “Pension Funding Partnership (PFP)” that aims to use the asset base of an organization to finance its obligations for pension deficits. PFP is now being used to meet pension deficit obligations of over £2 billion, or 75 percent of the activities in the market backed by assets from partnership structures.

Currently, Deloitte is in talks with several organizations from the public sector to discuss how PFP should be used.

“We welcome the Pensions Regulator’s recent guidance that alternative funding arrangements can improve the support provided to a pension scheme, reduce risk to members and, at the same time, strengthen the covenant of the sponsoring employer,” Clare said, conceding that alternative mechanisms could help in the funding schemes for employers.

Along with its growing pension advisory services, Deloitte has also been recruiting key players in the area, including PFP expert and former head of corporate finance at Marks and Spencer, Eileen Haughey and PWC partners Richard Slater, who joined Deloitte’s Edinburgh area, and Mark McClintock who joined Deloitte’s Belfast office.

 

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