Workshops
| Date | Details |
|---|---|
| Day two 10:45 - 11:45 | Workshop session A |
| A1: Pension plan solvency and extreme market movements: a regime switching approach The global credit crunch has forcibly highlighted the joint impact of extreme market events on the asset and liability side of pension plans’ balance sheets. Given these turbulent conditions, it is critical to better understand potential future pension fund solvency risk. We will consider the use of multi-state models as an approach to modelling rare, but extreme, events..
Speakers: Dr Iain Clacher, Leeds University and Professor Mark Freeman, University of Bradford Level: No prior knowledge required
A2: Investor beware: alternative investments There is an increasingly complex range of options facing trustees when investing scheme assets, particularly in the area of alternatives. These present schemes with opportunities but also legal risks that need to be understood and appropriately managed. Hugh Gittins, head of Eversheds’ pensions investment team, will explore these issues.
Speaker: Hugh Gittins, Eversheds Level: No prior knowledge required
A3: How structural models of mortality can inform decision-making Most mortality models don’t explicitly allow for medicine and lifestyle. Doing so can provide greater insight into future mortality, de-risking strategies, and how mortality could differ between different groups of people. Speaker: Jon Palin, RMS Level: Prior knowledge helpful
A4: Board polarities in trustee bodies: balancing the critical behaviours which determine good governance Today’s trustee is required to fulfil their role well, making a contribution to complex meeting discussions often outside of their day to day areas of expertise. In addition to this, whilst trustee bodies need to be made up of competent individual performers, the most effective trustee bodies are much more than the sum of their parts. This session explores the effect of polarities in trustee bodies and how behaviours can be balanced to ensure good governance is achieved, and maximised.
Speaker: Margaret de Valois, Mazars Level: No prior knowledge required
A5: Fresh perspectives on improving the adequacy of pension savings amongst young women Drawing on consumer research amongst young women, we will explore developments in the adequacy of pension savings. This will be set against a backdrop of the fi nancial/social priorities of this group and potential approaches to closing the pension gap with their male counterparts.
Speaker: Rupert Sinclair, YouGov Level: No prior knowledge required |
| Date | Details |
|---|---|
| Day two 11:55 - 12:55 | Workshop session B |
| B1: What keeps covenant assessors awake at night? Putting a value on covenant? Will solvency II demand this? Why bother with covenant? How do you get trustees and companies to engage? Have the covenant assessor and investment adviser ever spoken together other than passing each other on the way out/in? And more....!
Speaker: Adrian Bourne, Towers Watson Level: Prior knowledge helpful
B2: Improving risk management in DC investments • defining the risks Managing risk through time • avoiding the bear traps of assumptions • improving risk adjusted outcomes by combining accumulation and decumulation in a single product • the holy grail - providing guarantees.
Speaker: David Hutchins, AllianceBernstein Level: No prior knowledge required
B3: An analysis of pension security and economic efficiency By considering forms of pension – DC, DB and Hybrid, structures for provision, security mechanisms and regulation in a common context, this presentation will draw conclusions for both scheme design and regulation whilst demonstrating the cost and security implications for members and sponsors.
Speaker: Con Keating, BrightonRock Group Level: No prior knowledge required
B4: UK pensions tax relief - the latest The conference falls a month after the first tax year of the new Annual Allowance regime and after the Lifetime Allowance reduces. What have we learned, what is still on the move, and what pitfalls have emerged particularly for actuaries advising defined benefit pension schemes - even closed ones.
Speaker: Karen Goldschmidt, Lane Clark & Peacock Level: Some prior knowledge required
B5: Resource and environmental limits to economic growth There is a risk that resource and environmental issues, especially high oil prices caused by constraints to the global oil supply, might reduce the trend growth rate of the economy. This talk explores the potential effects on long term investment returns.
Speaker: Oliver Bettis, Munich Re Level: No prior knowledge required |
| Date | Details |
|---|---|
| Day two 16:10 - 17:10 | Hot topic research breakout sessions |
| Hot topic 1: Is there a place in the DC pensions mass market for guaranteed products? Investment Risk for DC falls on individuals, of whom a large proportion are not capable of assessing or managing such risk. The Working Group looks at whether individuals need/want guarantees, methods of providing these and how any solutions can be communicated.
Speakers: Scott Eason and Gillian Foroughi Level of knowledge: No prior knowledge required.
Hot topic 2: Meeting Pension Obligations: measurement, risk and flight paths Following on from the successful Sessional Meeting paper, the authors will present their key findings. In particular, they argue for the importance of a coherent approach to measuring pension obligations, articulating risk and putting in place a flight path. The authors will put forward their proposals for a robust framework and claim that such a framework leads to better decision making from pensions stakeholders.
Speakers: Dr Iain Clacher, University of Leeds and Marcus Hurd, Aon Hewitt
Hot topic 3: Can transforming consumer information stop a generation sleepwalking into retirement? The professionals in our industry are well aware we have a savings problem looming in the wake of DB funds. So why aren’t consumer behaviours changing? What can actuaries do to help? The profession’s ‘transforming consumer information’ working party suggests that financial communication must be more directly related to the reader’s goals, life-stage and financial awareness level. The ‘sleepwalking into retirement’ working party are building tools to demonstrate to laymen what their life will look like if they continue on the course they are on. In this session we aim to bring the two together and apply new consumer information principles to these demonstration tools.
Speakers: Alan Higham and Jim Hennington
Hot topic 4: LDI and swaps (details TBC)
Hot topic 5: Solvency II for pensions: EIOPA advice and principles for pension fund risk management The potential application of Solvency II to pensions is set to change the pensions landscape over the next few years. This session will explore the key principles set out in EIOPA’s advice on the review of the IORP directive, in particular the introduction of a Holistic Balance Sheet. The Working Party wishes to explore with the audience how a HBS approach could be adopted in a practical and workable manner for the benefit of pension risk management (irrespective of how political decisions influence any final legislation) and consider whether this approach is beneficial to key stakeholders.
Speakers: Celene Lee, Graham Collins and Jethro Green |
| Date | Details |
|---|---|
| Day three 10:10 - 11:10 | Workshop session C |
| C1: Defined benefit pension plan funding and corporate value This presentation proposes and examines a new model for assessing the corporate value implications of DB plan funding. We show the presentation of pension scheme obligations in company accounts can be misleading for assessing both corporate value and risk, that many stakeholders do not seek to maximise corporate value in their decision making and that equity prices do not react to new pension information in a manner consistent with the underlying theories of valuation. In summary, these results suggest that the financial obligations of pension schemes are not fully understood by market participants and, consequently, significant mispricing may exist.
Speakers: Dr Iain Clacher, Leeds University and Marcus Hurd, Aon Hewitt Level: No prior knowledge required
C2: DGFs - what’s in a name? As more pension funds seek to diversify their return-seeking assets away from equities, do Diversified Growth Funds really offer the diversification they advertise? This session will help delegates understand the range of strategies that can fall under this general description and consider their past and potential performance.
Speaker: Pete Drewienkiewicz, Redington Level: Prior knowledge helpful
C3: Dealing with change and the unexpected Unexpected change can throw us. Handled well, it offers opportunities to re-evaluate, re-focus and explore fresh perspectives. This practical session gives you tools to prepare for and manage unexpected change. We assess what it can mean, explore your ‘control zone’, identify options and planning steps, look at how to get and give help and handle setbacks so you can move forward. Speaker: Jennifer MacKay, Jump Training and Development Level: No prior knowledge required
C4: Buying bulk annuity contracts for small schemes An introduction and update on the bulk annuity market with a focus on smaller schemes (liabilities under £100m). A discussion of current levels of schemes’ assets and Technical Provisions versus bulk annuity premiums; key recent deals completed; innovation by insurers eg medical underwriting; an exploration of current and future influences on insurer pricing; future market developments; and practicalities of longevity insurance for small schemes.
Speakers: Francis Fernandes and Colin Parnell,Bluefin Level: No prior knowledge required
C5: The failure of modern portfolio theory and implications for pensions actuaries I would like to explore the problems associated with the assumptions underlying much of modern financial theory and the implications for future pension provision. I believe these assumptions are not merely wrong; they are dangerously wrong. We need to find methods that reflect reality rather than assuming that financial markets work according to the “normal” model.
Speaker: Adam Lane, Mercer Level: No prior knowledge required |
| Date | Details |
|---|---|
| Day three 11:35 - 12:35 | Workshop session D |
| D1: Quantifying mortality risk in small defined-benefit pension schemes A risk of small defined-benefit schemes is that there are too few members to effectively pool mortality risk. We quantify the risk and examine how large it is. Finally we quantify the amount of the mortality risk concentrated in different sections of a scheme.
Speaker: Dr Catherine Donnelly, Heriot-Watt University Level: Prior knowledge helpful
D2: Identifying and tackling ethical dilemmas in pensions In this session participants will be presented with examples of situations in which they may find themselves in their professional lives. They will be challenged, in groups, to analyse these scenarios and articulate the decisions being faced together with the pros and cons of each possible course of action. Through structured questions and group discussion we will explore in particular the ethical considerations that weigh on the decision, how they may be identified and explained, and how such analysis can help us improve and justify our professional decision-making process.
Speaker: James Dempsey, University of Leeds Level: No prior knowledge required
D3: Creating economic and shareholder value The decisions taken in many pension schemes are not aligned with corporate strategy. Even if they are, they may not be creating economic and shareholder value. How should corporate pension strategy be set to create value for its stakeholders? Where are the conflicts? Do MNTs have the biggest conflict of all?
Speakers: Simon Taylor and Jon Breedon, JLT Pension Capital Strategies Level: Prior knowledge helpful
D4: Horizontal integration of state and private pensions The idea is to use private pensions to say age 85 only (and so schemes have in effect fixed longevity) and let the state take the longevity risk by increasing the state pension at 85 to cover needs in late retirement.
Speaker: Adrian Waddingham, Barnett Waddingham Level: Prior knowledge helpful
D5: What’s new in LDI? In the post-financial crisis world, advocates of Liability Driven Investment strategies have expanded their toolbox in response to the changing circumstances. In this session, delegates will learn about latest tools, techniques and opportunities being used in liability hedging strategies.
Speaker: Steven Catchpole, Cardano Level: Prior knowledge helpful |
| Date | Details |
|---|---|
| Day three 13:30 - 14:30 | Workshop session E |
| E1: Sustainable Pensions This session will be a tour of some practical ideas for sustainable pensions, such as: • Stop trying to do too much • Stop valuing pension schemes badly • Put some flexibility into the pension promise • Relying on the PPF • Better legislation
Speaker: Derek Benstead and Mark Rowlinson, First Actuarial Level: No prior knowledge required
E2: Estimation of retirement adequacy targets from income and expenditure data Retirement adequacy targets are critical to pension plan design (including investment strategy), public policy and personal financial planning in both the UK and overseas. The pensions industry in South Africa is facing government-led reform due to the perception that current DC benefits are not sufficient. This innovative research provides estimates of South African household targets using official income and expenditure survey data and Chi-Squared Automatic Interaction Detection techniques. Comparative UK target estimates are also presented. Given the UK trend towards DC provision, which has occurred more recently than in South Africa, much can be learned from this research in relation to future benefit adequacy in the UK. Speaker: Megan Butler, University of the Witwatersrand, Johannesburg Level: Prior knowledge helpful
E3: Old benefits in a new light This session will look at the options generally provided to DB members at retirement, and examine why the approach to DB retirement needs to change; taking into account legislative developments, member attitudes, developments in the retirement market and the potential for mis-selling.
Speaker: Anne Jones, Towers Watson Level: No prior knowledge required
E4: Longevity indices and the development of a capital market Swiss Re has a long history of transferring insurance risks into the capital markets and is a leading reinsurer of longevity risk. This session will provide an insight into the use of index solutions for longevity derisking and the potential for developing a capital market in longevity risk. The session will also help delegates understand the longevity reinsurance market, which will provide some insight into the products and pricing available to pension schemes for managing longevity risk.
Speaker: Daniel Harrison, Swiss Re Level: No prior knowledge required
E5: The road to public sector pensions reform Drawing on his experience working on the Hutton commission, Steve will take attendees on a whirlwind tour including: • An overview of the current state of play • What else could Lord Hutton have done? • Affordability? What was the point of the adequacy principle? • Fair deal? Reform by the back door? • Will the reforms really last for 25 years?
Speaker: Steve Simkins, KPMG The views expressed will be those of the speaker rather than KPMG’s Level: No prior knowledge required |