Institutional Banners DB NEW

Defined benefit

Defined benefit plans are complex and with complexity comes risk. We work with defined benefit plan sponsors and their stakeholders to understand these risks and determine the most efficient and effective ways to immunise the plan sponsor from these risks.

Challenger offers a range of tailored solutions to help defined benefit schemes isolate and immunise these risks:


Active defined benefit

Advice Client 


Money Cash

Longevity swap 

Money Movement


Money Savings

Successor fund transfer

Advice Conversation

Challenger capability  Challenger can assist internal teams with advising and implementing asset and liability overlays to reduce equity, interest rate and inflation risk. The trustee purchases an income stream to match the defined benefit liabilities and retains responsibility for administering and reporting the existing account.  The trustee pays a fixed schedule of payments to Challenger Life, in exchange for the actual payments for the covered members. Challenger Life has full responsibility for meeting all pension liabilities, including investment and administration. The defined benefit pension is rolled over to a Challenger lifetime annuity. Transfers members from the existing super fund into the Challenger Retirement Fund. Challenger trustee takes over all ongoing liability to the member.
Member relationship  Super Fund Super Fund  Super Fund  Challenger  Challenger 

Defined benefit plan de-risking can provide a welcome relief to plan sponsors by reducing the impact that volatile investment markets can have on earnings. In addition to removing investment risk, de-risking also protects the plan sponsor against unexpected increases in longevity, allowing them to focus on their core business activities and providing peace of mind.