THE credit crunch and investment market volatility have so far not had a material effect on pension schemes, according to Mercer.
However, trustees and companies considering how their exposure to investment market risks can be reduced have been warned to be cautious. They are advised to consider whether the processes used for measuring the extent to which risk is transferred to another provider are sufficiently robust. Even regulated buy-out companies, who offer some of the more usual de-risking solutions to pension scheme trustees, will not be immune to the effects of economic instability. Deborah Cooper of Mercer said: "Market volatility since the start of the year shows the importance of risk management. It ...
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