Less than a dozen of the UK's largest occupational pension schemes are contemplating using annuity buyout arrangements, despite the greater competition afforded by hedge fund and private equity-backed firms attempting to depose more established market specialists.

A survey of 52 UK company schemes with assets of more than £1bn (€1.48bn) reveals that larger schemes are tending to use their own resources to implement sophisticated risk management strategies, according to human resources company Hewitt Associates.