Current Issues in Pensions 2017 (CIP) London

Alternatives to Gilt Valuations, Marcus Hurd, Conduent

How to select the appropriate discount rate for pension liabilities is one of the most controversial topics in pensions and is a never ending problem for sponsors, trustees, and actuaries (as they have to implement and explain what has happened). With some UK government debt now yielding negative interest rates, this talk looks at some of the alternatives to gilt valuations, questions whether the current approach has driven too much behaviour, and what the prospects are for the future. This session should be a lively and forthright debate as there aren't many actuaries who don't have a view on this thorny subject.

To hedge or not to hedge…  Sophia Heathcoat, Barnett Waddingham

With gilt yields hitting historic lows towards the end of 2016, is now really the best time to implement liability hedging, potentially locking into record deficits?  In this session we will consider the current role of an LDI portfolio, how it can impact the actuarial valuation as well as how schemes can use different hedging instruments to maximise the yield they are locking in to.

TPR Case Study - Clive Pugh, Burges Salmon

A new world of regulation - the Pension Regulator's recent Moral Hazard cases and a top ten checklist for clearance

Recent high-profile cases and the suggestion of further increased powers for the Regulator all point to a new world of regulation for pension schemes and their sponsoring groups.

We will look at what can be learned from the key cases over recent years, including drawing lessons from Burges Salmon’s work on the moral hazard investigations in relation to:

• Silentnight
• Bernard Matthews
• Coats/Guinness Peat Group (Brunel)
• Desmonds
• Great Lakes
• Nortel (advising the German pension assurance fund as a creditor of Nortel Gmbh).

A more active Regulator with greater powers paves the way for a reverse of the dramatic decline in clearance applications in recent years, even if the proposals for compulsory clearance don’t go ahead. We will be sharing our “top ten checklist” for successful clearance applications – which applies equally to traditional corporate transactions and innovative proposals.

This session will involve attendees discussing current pensions and actuarial issues with their peers. Attendees will be encouraged to contribute actively in the session by sharing opinions and experiences in a candid and collegiate discussion under Chatham House rules.  The aim is not to give an eloquent (or not) report back, but to have a robust and informed discussion.  Topics will include issues suggested by the rest of the day’s agenda and other recent industry developments.

GMP inequalities – is GMP conversion the answer? David Everett, LCP

This presentation is intended to give an insight, by one of those on the industry side of the Department for Work and Pensions’ GMP conversion working party, into the proposals that the DWP released on 28 November 2016.  The contention is that GMP conversion is the most practical means by which the GMP inequalities issue can be addressed.

The talk comprises:

• How GMP inequalities arise and why they matter
• What solutions are potentially available
• An outline of the GMP conversion solution
• An examination of the methodology that is to be found in Annex D of the consultation paper
• The difficulties that actuaries will face in model building and processing
• Current legislative difficulties
• How costs could be kept down

Professional Skills Session - Actuaries Behaving Badly, Sally Calder, IFoA

A potential professional wake-up call to remind members of situations where actuarial ethical judgement may be challenged