K3 Advisory has launched a new buy-in to buyout service for small to medium schemes.

The service, which was previously only available to existing K3 clients, will help trustees and insurers with moving schemes through the transition period from buy-in to buyout, and the ultimate wind-up of the scheme.

K3 Advisory partner and head of buy-in to buyout services, Andrea Mendham, explained that whilst many schemes have recently found themselves in a financially strong position and been able to pursue a buy-in contract, the process for moving to buyout, including data cleansing, balancing premium calculation and issuing individual policies, can be a “long and neglected road”.

She stated: “If not carefully managed, this phase can end up lasting many years, with trustees at risk of breaching their contractual terms for the data cleanse.

“Trustees and schemes have enough to think about and being able to outsource certain aspects of this important phase is a valuable time cost efficiency.

“It comes down to efficient and proactive project management, coupled with the expertise, time, flexibility and resource to complete specific data and benefit rectification work, or actuarial calculations such as GMP equalisation.

“Getting these done greatly reduces the length (and headache) of the data cleansing phase, saving valuable time and cost for the trustees and sponsor and allowing them to establish full security for scheme members as quickly as possible.”

---