PASA, the independent body dedicated to driving up administration standards across the pensions industry, has today published a new De-risking Jargon Buster.
As DB schemes increasingly move into maturity and engage with de-risking strategies, it’s essential all stakeholders, including administrators, trustees and sponsors, fully understand the terminology and implications of the different routes available. This latest resource provides accessible, clear explanations of commonly used de-risking terms and options, including liability management exercises, buy-ins, buy-outs, capital-backed journey plans, and longevity swaps.
Ian Wort, Chair of the PASA De-risking Journey Management Working Group, commented: “De-risking conversations often move quickly and involve a complex array of strategic, administrative and regulatory considerations. This Jargon Buster was developed to help demystify the language, supporting better understanding and smoother execution. It’s the first in a wider series aiming to break down myths and bring clarity to an area which is increasingly central to scheme strategy.
The Jargon Buster also outlines the administration and governance implications of each de-risking step, highlighting best practice and essential readiness tasks. It reinforces the importance of data quality, clear documentation, and robust project planning throughout the journey.”
David Fairs, PASA Chair, said: “PASA’s goal is to improve the practical delivery of administration across all areas of pension scheme management. De-risking has emerged as one of the most strategically important and operationally complex activities for DB schemes. This resource supports administrators, trustees and advisers in navigating this journey with greater confidence and clarity.”
The Jargon Buster is available to download now.
