17 November 2011
Note to all Pensions actuaries from Jane Curtis, President, Institute and Faculty of Actuaries.
Two of the hottest topics in pensions right now are Enhanced Transfer Value exercises (ETVs) and Pensions Increase Exchange exercises (PIEs). As well as statements made by the Pensions Minister and press coverage there have been some lively discussions at our “Current Issues in Pensions” seminars. These topics also come up in many meetings between the Institute and Faculty of Actuaries and other interested parties.
The Institute and Faculty of Actuaries’ approach to ETVs and PIEs
The Institute and Faculty of Actuaries does not have any direct regulatory role in this area but our public interest remit does lead us to consider what we can do to ensure that members of the public offered an ETV or PIE have full and comprehensible information with which to assess such offers.
We believe that the technical expertise of actuaries and their broad understanding of a wide range of the relevant issues mean that they are well placed to support work done in this area and to play a large part in helping pension scheme members get a fair deal. We would therefore encourage trustees and employers to involve actuaries as much as possible.
However we cannot force employers or trustees to use actuaries beyond their statutory role. Nor can we take on any kind of policing role in this area. Our role is therefore to:
- be proactive in discussing with those who do have regulatory roles, or related responsibilities, what they might do to help scheme members' interests;
- educate our members in the issues in the area of ETVs and PIEs; and
- remind our members of their responsibilities under the Actuaries’ Code.
What we have been saying to policy makers
The attached note sets out some of the points that we are making in our meetings with policy makers. It is relevant to all actuaries involved in such exercises. It also provides background and highlights areas where the Institute and Faculty of Actuaries has some concerns. It covers education, the Actuaries’ Code, the steps we have taken to influence regulators and our next steps.
With kind regards
Jane Curtis,
President, Institute and Faculty of Actuaries