25 August 2022
Sarah Brough, Pensions Board member, provides an update on their June meeting.
The June Pensions Board meeting took place on one of the hottest days of the year. I was pleased that our meeting was virtual and I didn’t need to travel on the tube in the hot weather! I volunteered to write a blog summarising our discussions and here’s my summary of our June meeting.
Digital community
The IFoA are working with the practice boards to create a digital community platform for each community, including one for pension actuaries. We are excited that the platform will enable the Board to reach out directly to members, host discussion forums, network, survey our membership and connect us with each other, and it will also give members the chance to engage more easily with the IFoA and each other. The Board sees the digital community as an opportunity to be proactive and be a body of influence. The Board will work with the IFoA on the Pensions area of the platform and agreed this was an opportunity to draw on the profession’s membership to provide input or to join a subgroup to advise on content. Look out for our volunteer ad to help get this kickstarted!
Updates from the sub-committee chairs
The Board’s work is supported by three sub -committees – Research, Lifelong Learning, and the Consultations Committee which each provide hugely valuable outcomes for our members. Each of the sub-committee Chairs is a member of Pensions Board and they provided an update on their committee’s activities. Some points of note from each:
- Research - the outputs from the Commutation Factors working group are eagerly anticipated, with a number of other working parties in the process of getting set up and carrying out their research.
- Lifelong Learning - is holding a virtual panel discussion on Pension Dashboards on 12th July. The Board are keen for the next webinar to be on the impact of high inflation.
- Consultations- The Board discussed whether and how to respond to two open consultations - FRC’s consultation on the review of the TASs and DWP’s consultation on Helping Savers understand their pension choices.
Update from Council and on international relations
The theme of both updates was on strengthening engagement.
Policy and public affairs update
The IFoA is strengthening its engagement with a number of stakeholders including the PLSA, PPI, MaPS, DWP and TPR. The IFoA has also been making a consistent effort to build stronger relationship with stakeholders in Westminster to build on Leah Evans, Pensions Board Chair, appearance at the Work and Pension Select Committee to provide evidence on accessing pension savings through Collective DC. The Committee’s report is expected in August – ideal holiday reading!
The upcoming Thematic Review on Corporate advice was discussed. It was noted that this is an area where there is less guidance for corporate actuaries than for actuaries who advise trustees. Understanding more about the range of advice provided is hoped to be helpful to those working in that area. The Board is ready to support the Review and to follow up on suggested actions.
Equality Act (Age Exemptions for Pension Schemes)
The Board is aware that some schemes have been approached to ask what the impact would be of removing the exceptions to the rules prohibiting age discrimination in occupations pension schemes. The approach follows a recent Employment Tribunal case that has cast doubt over the validity of one of the existing exemptions. The Board’s view was that this would not be a straightforward exercise for schemes and is a subject that should be considered in conjunction with industry bodies. The Board discussed which areas could be impacted and the role the Board could play in discussions. Members agreed to reach out within their firms for a wider understanding of the range of schemes that had been contacted, before deciding on next steps.
In a meeting of industry representatives with the DWP it was subsequently confirmed that:
- The DWP recognise that the information they have asked for may be quite difficult to provide and so they would be happy to only receive information on the measures protected by Article 3(b) which are not also protected by Article 3(a). In other words, the measures which would be impacted if Article 3(b) was removed. Even just a summary of a scheme’s measures that are likely to be impacted in such an event would be helpful.
- DWP would be happy to receive responses after the 8 July response date, but probably no later than 29 July. If a client is unable to respond by 8 July it would be helpful for the DWP to be informed that a response is being prepared for later submission.
Sustainability
Three initiatives are underway including a webinar being developed in conjunction with the Sustainability Board, a new video on professionalism skills and updated guidance on how to take account of climate risk, with links to useful materials.
Interaction with other Boards
A number of Board members have links with other IFoA Boards to exchange news on current areas of activity. Areas discussed included the digital community, DEI (diversity, equality and inclusion) and preparations for the new sessional year which starts in September.
AoB
The Board has met virtually since the start of the pandemic, but will have an in person meeting to start the sessional year in September. It will be good see everyone again and meet those who have joined the Board over the last 2 ½ years.