Ask One Question to Improve Your Pension and the Economy

With one question past and present employees of companies with defined benefit pension schemes can increase pension payments

Public policy has changed.  Actuaries can no longer wave through bulk transfers to life insurers.  They must now evidence a comparison of “get rid” transactions with sponsors sticking with the scheme.  The maths for a risk-benefit analysis backs run-on with long-term investment strategies and the use of surpluses over time to up pension payments.

Corporate sponsor and trustee engagement and a policy reset are needed.  A regulatory policy upgrade for actuaries from April 2024 requires it.  The incentive is there to keep asking them and trigger the process that leads to change – no need to swot up on the detail:  

“What are the conclusions of the Technical Actuarial Standard 300 Version 2 exercise?”

All stakeholders will benefit from the answers.

“The cost of leaving the pension industry to its own devices has proved high.  Now one question to actuaries collapses its Giant Jenga tower.  Excellent public policy changes made over the last 18 months mean defined benefit pension funds can help provide stable, economic growth.  Members should let trustees and sponsors know they are on the case and have high expectations.”  William McGrath, founder C-Suite Pension Strategies and formerly CEO of Aga Rangemaster Group plc

NB: Schemes can generate 1.5% to 2% above low dependency actuarial discount rates when they “Run On 4 Good”.  Current actuarial analyses of strategic risk-benefit have major gaps – bridged by C-Suiteps Analytics.

• 0.5% of assets a year used to improve pensions can equate to a 10% increase.
• 10% more scheme investments in Government identified productive assets classes would be £140 billion.