Actuaries as NEDs and the Defined Benefit Pension Scheme Challenge

What are the additional problems that arise for the NED in this position, particularly in the context of corporate transactions, and how can these be addressed?

DB schemes, which are often closed to new employees, usually provide much more generous benefits than DC or auto-enrolment plans, exacerbating the sense of ‘inter-generational inequality’ which featured so prominently in the recent General Election.  Do these issues of inequality between members and non-members pose questions for NEDs and the Board?  Add in the perspectives of different generations of scheme members, current, deferred and pensioner, and there are significant challenges in attempting to reconcile what may be incompatible objectives.

What is the role of the NED on the Board and what are the issues to consider, given the potential for tension between the company, the pension scheme, the Trustees and the members?  Such NEDs might well be looked to by other members of the Board for their views on how to address the competing claims of shareholders and pension scheme members.

How should the Board respond to pressure from the Trustees to safeguard or improve funding levels and how should investment strategy and the needs of the shareholders be reconciled?

What additional responsibilities may fall on the Actuary NED in the context of an M&A transaction?

Is this an area where the profession should review the guidance it provides to members?

To look at these issues from the perspective of the various parties, including the NED Actuary, Trustees and the Board, we are joined on 26 September by a panel of expert speakers.

Sir Steve Webb, Director of Policy at Royal London, will be our Chair for the event.  Steve was previously Minister of State for Pensions between 2010-2015.  He will be joined by pensions experts Joanne Segars OBE, until very recently, Chief Executive of PLSA and now chair at the LGPS Central Pool; and the DWP’s Director of Private Pensions and Stewardship, Charlotte Clark CBE; along with Rosalind Connor and Simon Willes.  Rosalind is a Partner at ARC Pensions Law and Simon is Chairman of Gazelle Corporate Finance.  More details of the speakers and their backgrounds is available on the website.