The pensions world continues to change rapidly, introducing many new challenges for the actuary involved in pensions. There is a constant need to keep up to date with developments in business, legislation and the regulatory framework, and in the actuarial techniques that may be applied. This applies to all actuaries, and not just to those in Category 1.

Areas that are particularly relevant currently include:

• Sponsor covenant and credit risk are playing an increasingly important part in the advice actuaries are giving, in particular in relation to financing pensions benefits and setting investment strategy.
• Funding pension schemes is being hotly debated all over the developed world. Issues under debate in the UK include the appropriateness of the traditional funding techniques where credit is taken for future investment return, the effect of new regulation, the possible impact of the PPF and the affordability of defined benefit schemes in general.
• Improvements in mortality and the uncertainty about future improvements are continuing to pose new challenges for pensions actuaries. The e-alert to pensions actuaries in December 2006 noted that actuaries should be cognisant of the latest published tables and other up to date information (including the "00" series tables, and the CMI SAPS Working Papers), as well as considering a scheme's own experience (where it is practical to do so) and that consideration of mortality projection bases is also very important.
• The approach to managing accrued deferred benefits from defined benefit pension schemes is changing and many different options are becoming available in the investment management, investment banking and buyout insurance arenas. We have seen a lively debate open up between the actuaries in these various roles as to the appropriate measurement and management of the liabilities and many highly innovative approaches to securing the benefits have emerged.

Subjects for technical needs analysis

With all this change it is vital that each of us keeps our level of pensions knowledge up to date so we can continue to provide high professional standards of service and advice to our clients. Our knowledge and techniques must develop and keep pace with the future challenges if we are to continue to provide value in our work as pensions actuaries. Additionally, there is significant responsibility imposed on Category 1 actuaries, i.e. those in possession of a Scheme Actuary Certificate, which is renewable annually on certification of, among other matters, the completion of relevant CPD requirements.

The Pensions Practice Executive Committee will be providing a number of pensions-related CPD opportunities in the above areas of interest, as well as specialist technical events covering topics such as financial economics.

Additionally, in whatever area we practise, we need to observe the requirements of the Professional Conduct Standards and any relevant guidance notes, and should have regard to any associated advisory notes. Extending our education through CPD is an essential means of enabling us to do so. However, practical experience is also vitally important, and you should not undertake any assignment without either adequate personal experience or assistance from an actuary or other relevant expert who has the right experience.