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My account » Huw Evans from the Institute and Faculty of Actuaries comments on today's statement from the Pensions Regulator regarding funding in the current environment for defined benefit pension schemes » »

27 April 2012

“The Institute and Faculty of Actuaries welcomes the statement of the Pensions Regulator’s views on how pension scheme sponsors and trustees should approach funding in today’s challenging economic environment.  We fully endorse the emphasis in the statement on managing the funding risks without being too prescriptive in the approach.  Actuaries have the necessary skills to give the advice that trustees and sponsors will need in dealing with these risks. We shall be working closely with the Regulator to ensure that actuaries play their part in ensuring these risks are identified, measured and managed effectively”.

"The statement makes it clear that the scheme funding regime has the flexibility to remain fit for purpose even in extreme conditions, and that trustees and employers should look for evidence based solutions to address the risks that they face.

“On 10 April 2012 the Institute and Faculty of Actuaries hosted an event to discuss the impact of low bond yields on pension schemes at which it was concluded that it was important that actuaries should illustrate the impact of a broad range of future yield scenarios to their clients. We are pleased that the Regulator also believes that schemes should undertake such contingency planning”.

ENDS

Enquiries: Tel. Michael Scanlan 020 7632 1453 or email michael.scanlan@actuaries.org.uk

Notes to 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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