Current Issues in Pensions (CIP) Edinburgh

Alternatives to Gilt Valuations 

How to select the appropriate discount rate for pension liabilities is one of the most controversial topics in pensions and is a never ending problem for sponsors, trustees, and actuaries (as they have to implement and explain what has happened). With some UK government debt now yielding negative interest rates, this talk looks at some of the alternatives to gilt valuations, questions whether the current approach has driven too much behaviour, and what the prospects are for the future. This session should be a lively and forthright debate as there aren't many actuaries who don't have a view on this thorny subject.

Speaker: Marcus Hurd, Conduent

Implications of Low Gilts Yields and Outlook for Capital Markets 

Low gilt yields are having serious consequences for pension scheme as well as much wider implications.  Many of the problems that caused the financial crisis still plague the global economy.  Jemma and Duncan will look at the link between yields and other capital markets and consider the future outlook for investment returns with a look at the prospects of debt, deleveraging and inflation. 

Speaker: Jemma Beattie, Hymans and Duncan MacInnes, Ruffer LLP

Regulation and Government policies- Is the increased engagement by the Regulator, FCA and the Government having an impact on the Pensions world? 

The session will consider the recent hands on approaches/ proposals by the Pensions Regulator, the FCA and the Government in relation to pension schemes and considering whether this is having a positive/ negative impact on the pensions sphere. In particular we will discuss:

• The Pensions Regulator's increased focus on DB schemes particularly when dealing with insolvency situation/ under funding;
• the FCA and increased concentration on the management of the investment market including some significant criticism in its recent AMMS report; and
• the DWP's Green Paper and what possible changes the Government may have in store for pensions in the future. 

Speakers: Julie Currie & Sara Oliphant, Pinsent Masons

This session will involve attendees discussing current pensions and actuarial issues with their peers. Attendees will be encouraged to contribute actively in the session by sharing opinions and experiences in a candid and collegiate discussion under Chatham House rules.  The aim is not to give an eloquent (or not) report back, but to have a robust and informed discussion.  Topics will include issues suggested by the rest of the day’s agenda and other recent industry developments.

Speaker: Doug Huggins, First Actuarial

GMP inequalities – is GMP conversion the answer? 

This presentation is intended to give an insight, by one of those on the industry side of the Department for Work and Pensions’ GMP conversion working party, into the proposals that the DWP released on 28 November 2016.  The contention is that GMP conversion is the most practical means by which the GMP inequalities issue can be addressed.

The talk comprises:

• How GMP inequalities arise and why they matter
• What solutions are potentially available
• An outline of the GMP conversion solution
• An examination of the methodology that is to be found in Annex D of the consultation paper
• The difficulties that actuaries will face in model building and processing
• Current legislative difficulties
• How costs could be kept down

Speaker: Kenneth Donaldson, Quattro Pensions

Professional Skills Session - Actuaries Behaving Badly

A potential professional wake-up call to remind members of situations where actuarial ethical judgement may be challenged

Speaker: Neil Hilary, IFoA