A Timely Regulatory Requirement Which Highlights Gaps in Actuarial Analyses

​Technical Actuarial Standard 300 V2 came into force in April 2004.  It is reflective of changed public policy.

​Actuaries advising schemes and sponsors on bulk transfers and journey plans which lead to them must consider credible alternatives.  They have to provide evidence that the work has been carried out.  Run On 4 Good is a credible alternative.

The switch from the PPF to the FSCS safety net has a steadily declining worth yet it is central to the case for bulk transfers.  The maths is very rarely set out.  Now with the probability of more from discretionary payments from surpluses being high and the probability of less, remote, trustees need those numbers.  C-Suiteps Analytics addresses the subject.

Consultants are floating run-on idea with limited conviction while driving their risk transfer businesses in a £50 billion a year market.  Where is the maths?  You should ensure that they do address the relevant information that you have a duty to consider.  TAS300 V2 is a timely challenge to actuarial thinking and to the risk transfer industry.

Run On 4 Good involves a new, long term asset management strategy; surety back up and discretionary payments.  It aligns DB schemes with sponsor ESG strategies.

We produced a case study  – using public sources – to summarise what happened to one mainstream DB scheme.  All explicable but a sub optimal outcome for employees past and present.  And a story of how distorted resource allocation can be for sponsors.

Sugary, mutual admiration packed press releases are a staple diet of risk transfer professionals.  Where’s the beef? 

Our case study suggests new recipes are needed.