Simplify your Buy-out with AVC Consolidation
The key to a smoother, faster buy-out
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Why AVCs & Small DC Arrangements can delay a
Buy-outAs more pension schemes move towards buy-out, legacy AVCs and small trust-based DC arrangements can create costly delays. Poor-quality data, fragmented AVC arrangements, and outdated provider policies create unnecessary complications that can slow down or even derail your progress to buyout.
AVC consolidation for pension scheme buy-out is now a critical step in overcoming these hurdles efficiently.
The Dalriada.Defined Contribution Consolidator (DCC) provides a streamlined, trustee-led solution that ensures your AVCs are buy-out-ready - removing unnecessary barriers and allowing your scheme to complete transactions more efficiently.
The challenges posed by AVCs
- Obtaining AVC data – This is not just the data from your recorded AVC providers but ensuring all AVCs are captured, e.g. we have been appointed where the trustees had previously though they had wound-up the scheme, only to find legacy AVCs some 4 years down the line.
- With-Profits investments and Underpins – Typically a DC Master Trust is unable to accept With-Profits and investments with underpins.
- Disproportionate costs and finding a viable alternative – In isolation, a single pension scheme is not able to achieve the benefits of scale and may struggle to locate an alternative platform to enable the main buy-out to conclude.
The DCC Solution
We help you clear the path to buy-out by consolidating AVCs and small DC schemes into a high-quality, well-governed DC Master Trust, ensuring:
Buy-out is not impacted
We align the DCC service so that the main Scheme buy-out is not affected by the AVCs.
Clean, Insurer-Ready Data
We simplify your member records, ensuring they meet insurer expectations and clarify with the Administrator that all AVC data is available.
Cost controls
The DCC solution provides benefits of scale, across Dalriada’s trustee appointments rather than one scheme in isolation.
With-Profits investments & Underpins
The DCC solution enables the conversion of legacy arrangements.
Acceptable costs and a viable alternative
The DCC solution provides an alternative irrespective of the size of the AVC assets, with services and costs benefitting from scale.
Through our DCC service, we deliver AVC consolidation for pension scheme buy-out, enabling trustees to meet insurer requirements without delay.
The advantages of buy-out
Buy-out opportunities can move quickly, and trustees who proactively consolidate their AVCs and small DC arrangements means they are better positioned to secure favourable insurer pricing and accelerate the transition process. Insurers prefer clean, well-managed data, ensuring your AVCs are structured correctly can make all the difference.
How we support buy-out readiness
Dalriada.DCC leads the AVC transition process in collaboration with:
Smart Pension
Master Trust administration & investment platform.
Hymans Robertson
Investment advice & actuarial advice where applicable.
Gowling WLG
Legal advice.
This integrated approach removes administrative burdens and provides your scheme with a clear, structured pathway to buyout, including complete AVC consolidation for pension scheme buy-out.
Why is Dalriada. DCC is a smarter buy-out solution
Beyond buyouts, our DCC model consolidates your AVCs into a well-governed DC Master Trust ensuring:
- Value for Money – a member charge which is a fraction of the typical AVC charges, c.0.75% p.a.
- Improved investment Governance - direct regulatory oversight from The Pensions Regulator.
- Investment into a quality default investment - including lifestyle and ESG options, along with other options for self-selection;
- Enhanced member experience and engagement through:
- On-line functionality,
- Dedicated UK helpline,
- ‘Scam safe’, at and post-retirement options included, e.g. drawdown.
Helping you taking the next step
With more schemes targeting buyouts, ensuring your AVCs and small defined contribution pension arrangements are clean, compliant, and consolidated is critical. Dalriada.Defined Contribution Consolidator (DCC) removes uncertainty, reduces risk, and accelerates the process - so you can focus on securing the best outcome for your scheme and its members.
Contact us today to find out how AVC consolidation for pension scheme buy-out can streamline your transition, reduce risk, and improve outcomes for your scheme and its members.
