A lack of quick access to accurate information is causing pension schemes to miss opportunities to reduce their risk, PricewaterhouseCoopers (PwC) has found.

A PwC survey of 150 defined benefit (DB) schemes revealed that despite a strong appetite to complete buy-ins or buy-outs, very few have the sufficient information they need to track market opportunities to execute these deals in an efficient and timely way.

Of those surveyed, only 11% have access to real-time asset and liability updates, which then makes it difficult and expensive to monitor pricing triggers.

As attractive pricing opportunities are short-lived, delays in information can make the difference between a deal going through or not, and whether the price the deal is executed on is commercially sound, PwC said.

The firm also found that very few schemes have access to accurate liability valuations, which means that even their initial strategic decision-making about the viability of a buy-in or buy-out may be misinformed.

Raj Mody, PwC head of pensions, said: "The size and volatile nature of funding defined benefit pension schemes continues to impair UK business.

"The uncertainty over just how much companies will need to pour into their pension schemes to manage their deficits means many are looking at opportunities to remove the risk from their balance sheets."

Pension schemes representing over £100bn of liabilities are currently considering some form of third-party de-risking transaction, Mody said, but whether the interest converts to deals depends on a number of factors, such as having quick access to accurate information.

He said that schemes need to monitor their position accurately enough on a regular and rapid basis, if they wish to transact, and the developments in technology can provide trustees with direct access to the information that they need.

"For schemes where de-risking is on the agenda, it pays to be able to track more accurate valuations which reflect currently available commercial pricing. This approach is more likely to lead to better informed decisions and quicker deal execution," Mody said.

First published 21.01.2014

monique_simpson@wilmington.co.uk