IFoA responds to the Pensions and Lifetime Savings Association's Defined Benefit Taskforce Interim Report

Fiona Morrison, Immediate Past President of the Institute and Faculty of Actuaries (IFoA), commented today on the publication of the PLSA’s Defined Benefit Taskforce Interim Report:

“The IFoA welcomes the publication of the PLSA’s report. The report highlights the challenges that all participants in the DB market face, whether sponsors, employees, advisors, Government or regulator. We look forward to working with the PLSA to ensure the best use the flexibility of the current regulatory structure and to identify whether it is necessary and proportionate to make changes to the existing regime to address future requirements.

As the report identifies, the reality is that many members remain unaware that the security of their benefits relies on the sponsoring employers solvency. Similarly, many sponsors remain unclear about the cost and risk associated with meeting their pension liabilities. We welcome any opportunity to develop new approaches in communicating these risks to employers, members and trustees. “