Completing a buy-in should be viewed as a “milestone rather than a finish line”, with trustees needing to plan carefully for the operational and governance work that follows, Cartwright Pension Trusts has said.

The pension specialist warned that securing a pension risk transfer transaction was only one stage in delivering a defined benefit (DB) scheme’s endgame strategy, particularly where the scheme was ultimately targeting buyout.

The UK buy-in market has continued to grow as DB schemes benefit from improved funding positions and progress long-term planning.

However, Cartwright Pension Trusts noted that attention was increasingly shifting towards the practical steps required after transaction day.

These could include resolving historic data inconsistencies, addressing complex benefit structures and coordinating the wider activity needed to support the scheme’s chosen endgame strategy.

Cartwright Pension Trusts consultant, Rob Chandler, said trustees and sponsors should recognise the significance of completing a buy-in while remaining focused on the work ahead.

“Completing a buy-in is a major achievement and one that trustees and sponsors should rightly recognise.

“However, transaction day should be viewed as a milestone rather than a finish line. The work required afterwards is critical to delivering the scheme’s long-term objective.”

“As the market continues to mature, the focus needs to move beyond securing transactions and towards ensuring schemes are well positioned for the next phase of their journey,” he continued.

“Trustees, insurers, administrators and advisers are all managing significant volumes of activity, making early planning, clear ownership and strong oversight increasingly important.”

Data quality was identified as one of the main factors capable of affecting progress after a transaction.

Cartwright Pension Trusts stressed that insurer reviews could uncover historic inconsistencies, missing information or benefit complexities requiring further investigation.

“The important question for trustees is not whether issues will emerge, but whether they have the right processes and expertise in place to address them effectively," Chandler argued.

With this in mind, the firm encouraged trustees to review post-transaction plans early, allocate clear responsibility for outstanding work and maintain regular communication with advisers and service providers.

It also said data and benefit issues should be addressed as soon as they were identified to avoid delays later in the process.

“Ultimately, completing a transaction is only one part of the endgame process," concluded Chandler.

“Whether a scheme is moving towards buyout or pursuing another long-term strategy, success depends on the preparation, governance and collaboration that follows.”

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