1. A new look at the actuarial numbers
Really?
A hard look at the actuarial numbers as new actuarial disclosures throw the cold light of day on to actuarial magic. Get the disclosures completed under Technical Actuarial Standard 300 and factor the numbers into your own independent model of the scheme and recovery plan.
2. Testing the variables
What if?
3. A new collaborative flight plan
Let’s agree
Helping corporates get stuck into the tough subject of pensions
Really?
A hard look at the actuarial numbers as new actuarial disclosures throw the cold light of day on to actuarial magic. Get the disclosures completed under Technical Actuarial Standard 300 and factor the numbers into your own independent model of the scheme and recovery plan.
- In cash terms, just how much is being paid to meet actuarial prudence?
- How is the strength of the covenant impacting?
- Is the gap between the investment return targeted and that used in the model appropriate?
- Who decided on the future derisking plans? What is the justification?
2. Testing the variables
What if?
- What if we improve the covenant through third party, risk diversifying sources of cash from highly rated banks and insurers backing up recovery plans and covering covenant risks? Show us the adjusted model.
- What if we wait to see what happens? Amounts are deferred in a recovery plan (with third party guarantees if necessary) and paid when the empirical evidence is there to substantiate the requirement.
- What if the trustees flex their investment /derisking strategies to show a wider range of outcomes?
3. A new collaborative flight plan
Let’s agree
- Let’s agree to complete the integrated Risk Management exercise that The Pensions Regulator requires and expects.
- Let’s agree to tighten up how the trustees and their advisors are setting and monitoring investment management performance.
- Let’s agree to provide better explanations of the sponsor covenant.
- Let’s agree to plan for surpluses and not just deficits with future pension provision in mind.
- Let's agree to reactivate on a CDC/DC basis to benefit the finances of the sponsor, old members and current employees.
Helping corporates get stuck into the tough subject of pensions