Pension Capital Strategies Ltd (PCS) has launched a new investment option for pension schemes, in association with Tactica Assurance Ltd (Tactica).
This new investment option will significantly reduce risk and volatility, guaranteeing both cash flows and assets equal to IAS19 iabilities at all times for a ten-year period.
When a pension scheme chooses this investment option it will transfer assets that are equal to the IAS19 value of the chosen pension liabilities. In exchange, the pension scheme will receive a policy that guarantees all of its cash flows over a ten year period. It will also guarantee that the value of the policy will be equal to the IAS19 value of its liabilities at all times during that ten year period. At the end of the policy, assets are returned to the pension scheme equal to the IAS19 value of its liabilities.
PCS and Tactica believe that this will provide a company’s management, pension scheme trustees, as well as shareholders with a number of important potential advantages.
“We are very excited to be offering this product in conjunction with Tactica Assurance. This is the first pension insurance of its kind to remove significantly the costs to a company of managing and maintaining its pension scheme. We are confident that this option will appeal to a wide range of interested parties, from company shareholders to management and trustees,” says Charles Cowling, managing director, PCS.
“We view our relationship with PCS as a strategic partnership, providing clear advantages to Tactica in marketing and delivering our product to its target market. With the professional support of PCS we expect to generate significant volumes of business with what we believe is a truly innovative product,” adds Wai Au, CEO, Tactica Assurance.