Hi Lucy, hopefully others with more practical experience in this area will contribute their thoughts. But I think trustees of a DB pension scheme looking to buy out benefits will certainly be interested in the cash commutation terms since, for example, they will want to ensure that members are no worse off as a result of the buy-out. As such, commutation terms are likely to be considered as part of the negotiations between the trustees and an insurer. Pages 38 and 39 of this document from Rothesay provides some useful commentary: https://www.rothesay.com/media/awzlixrw/35053_rothesaybuyoutjournal_int.pdf
Last edited: Mar 28, 2022
