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20 December 2010

Responding to Lord Hutton’s formal call for evidence for the final report of the Independent Commission on Public Service Pensions, the Actuarial Profession has produced a submission which considers a wide range of issues from the sharing of risks associated with pensions schemes to the ability of employees to understand their pension arrangements.

President of the Institute and Faculty of Actuaries, Ronnie Bowie, said: “There is a range of viable possible risk sharing options which have some traction in the private sector whose experience the Commission could learn from.  However, our experience shows us that a greater degree of risk to be borne by employees needs to be accompanied by a greater emphasis on education and communication and, perhaps, provide ‘safe harbour’ default options for those not able to make their own informed choices.”

He added: “The Actuarial Profession will be responding, in detail, to the upcoming Treasury consultation on the discount rate used, among other things, to set unfunded public sector pensions contributions. The results of this consultation will no doubt have an important bearing on Lord Hutton’s final findings.”

The consultation response can be found here.

ENDS

Enquiries: Tel. Michael Scanlan on 07798 804 871 or email michael.scanlan@actuaries.org.uk

Notes for editors

  1. Actuaries provide commercial, financial and prudential advice on the management of a business’s assets and liabilities, especially where long term management and planning are critical to the success of any business venture. They also advise individuals, and advise on social and public interest issues.
  2. Members of the Profession have a statutory role in the supervision of pension funds and life insurance companies. They also have a statutory role to provide actuarial opinions for managing agents at Lloyd’s.
  3. The Profession is governed by the Institute and Faculty of Actuaries. A rigorous examination system is supported by a programme of continuing professional development and a professional code of conduct supports high standards reflecting the significant role of the Profession in society.
  4. The Profession is available to provide expert comment to the media on a range of actuarial- related issues, including enterprise risk management, finance and investment, general insurance, health and care, life assurance, mortality, and pensions.

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