Bulk Insured Pensions

Size: px
Start display at page:

Download "Bulk Insured Pensions"

Transcription

1 Bulk Insured Pensions A Good Practice Guide September 2011

2

3 ABI GOOD PRACTICE GUIDE 3 Foreword Pension fund trustees are faced with an ever increasing number of major challenges around scheme funding. Increased scheme longevity coupled with the turbulent investment environment mean that professional advisers continue to flag the issue of long term pension risk and the various options available to mitigate that risk. The spectrum of risk is broad and trustees, along with advisers and corporate sponsors, must decide where their DB scheme fits and its future direction of travel. As a contribution to the DB de-risking debate the NAPF welcomes this Good Practice Guide. It is important that trustees as fiduciaries acting in the best interests of all scheme members should fully understand the key aspects of the bulk insurance solutions available to them as a de-risking tool. While there is no substitute for actuarial, legal and risk management advice from qualified professionals, this Guide can be a helpful source of reference with which to navigate this one aspect of the complex de-risking process. Although scheme specific and external factors will impact upon the pace of de-risking, trustees need to keep under review the options open to them. A clear presentation of the buy out/buy-in debate is useful in setting out the options and can provide reassurance that any action taken has been properly thought through. The NAPF is the leading voice of workplace pension provision in the UK and represents 1,200 pension funds drawn from all parts of the economy which hold assets of 800 billion. Darren Philp Director of Policy National Association of Pension Funds (NAPF)

4 Contents Executive Summary 5 Introduction 6 Acknowledgements 7 Part I: Buy-in/Buyout Process 8 1. Preparation for Buy-in/buyout 9 2. Approach Request for proposal Final quotation Pre-implementation Implementation On-going administration 37 Part II: Other Important Considerations Impact of the Pension Protection Fund Trustee liability and protection GMP equalisation Data risk transfer Longevity insurance Liability Management Treating Customers Fairly 62 Glossary of Terms 63

5 ABI GOOD PRACTICE GUIDE 5 Executive Summary Welcome to this guide to good practice on the subject matter of bulk insured pension funds and de-risking. This guide will give you an overview of some of the options that are available, focusing on the process of pension scheme Buy-in/Buyout. provide you with some essential preparation objectives of a Buy-in or Buyout, to facilitate a smooth, speedy and focused process. help you to consider the essential steps necessary for successful completion of a potentially complicated undertaking. point you towards some of the legal requirements in key areas such as: discretionary benefits; partial Buy-ins; and the role of the Pension Protection Fund (PPF). The guide also contains a glossary of terms to help you understand the language used in Buy-in/Buyout transactions. Whilst it will not answer all questions that you might have, nor spare you the cost of collaborating with external advisors etc. We hope this guide will simplify the decision-making process for you and, in areas where you may have uncertainty, point you in at least the right direction. The guide was written by a group of like-minded insurers, employee benefits consultants, and lawyers, led by Margaret Snowdon of Lucida. On Page 8 you will find the list of contributors who freely gave their time to produce this document. We are also grateful for the support of the NAPF, the Pensions Regulator and the PPF. We hope you enjoy reading this guide, and are always keen to hear your feedback and any particular views you may have. Hugh Savill Director, Prudential Regulation and Taxation Association of British Insurers Darren Philp Director of Policy National Association of Pension Funds (NAPF)

6 6 ABI GOOD PRACTICE GUIDE Introduction The Buyout market is not new, but it has changed over the last few years and not a week goes by without Buyout being mentioned in the press. In the aftermath of the financial crisis, Buyout activity has been buoyant with various options and product offerings available. On the other hand, trustees have probably never been as confused as they are now and despite all the press coverage there seems to be little literature available to explain the how s and why s, what Buyout actually means and most importantly whether or not and by whom it should be considered as a valuable option. But where should one start? This guide aims to help trustees and any other interested parties understand the world of Buyout, explain it in laymen s terms and set out best practice. Page 9 contains a visual representation of the entire buyout process. Buyout is a broad term used to cover situations where the assets and liabilities of a Defined Benefit (DB) pension scheme are taken over by an insurance company. It is no longer simply the solution of last resort but in many cases has become the preferred way to transfer risks from a DB pension scheme. Buyout is considered as the end step in a phased de-risking solution, including liability management exercises (enhanced transfer values (ETV), pensions increase exchanges (PIE) and enhanced early retirement) designed to provide members with more choice and improve the funding situation for remaining members. Buyout can be a very powerful tool in a company s and trustees armoury to facilitate a corporate transaction, but it is important to understand what one is (or is not) buying. Choosing the right insurer to help you on this journey, whether it is a long term de-risking plan or a short term solution to an acute commercial problem, is therefore pivotal. Several corporate deals have failed because of the uncertain and volatile liabilities in a DB pension scheme: the well-publicised J Sainsbury case illustrates the critical nature of the pension plan in corporate activity. Insurance companies can provide tailored and innovative solutions to suit your circumstances and budget, but independent professional advice will always be needed. This could be from your existing scheme advisers, for example actuary, consultant, lawyer, etc. but often external experts are sought for their specialist knowledge of de-risking solutions and the players in the market. Therefore, trustees and companies must select their advisers with care to ensure they get the right advice and the right outcome as well as the right value to the scheme. As expert advice and a clear understanding of all available options is very important it should also be in the interests of the trustees to be well informed and not have to rely on their advisors recommendations blindly.

7 ABI GOOD PRACTICE GUIDE 7 Acknowledgements We are extremely grateful to the following organisations for giving their time freely to prepare this guide: CMS Cameron McKenna Hymans Robertson Lane Clark & Peacock Law Debenture Legal & General Lucida MetLife Pension Insurance Corporation Prudential Tax Incentivised Savings Association (TISA)

8 8 ABI GOOD PRACTICE GUIDE Part I: The Buy-in/Buyout process Preparation Stake holder engagement Understanding scheme and aims The importance of accurate data Investment strategy review Legal Considerations Feasibility employer advisers trustees risks faced objectives funding level availability of extra funding aims of de-risking exercise constraints carry out audit of scheme data assess potential impact on availability/ pricing of de-risking solutions potential impact of scheme s portfolio on pricing of solutions review of scheme rules to check trustee powers codify the exact benefits involved and the extent of trustee discretions possible solutions available assess affordability decision in principle to proceed with Buyout Quotation Process Approach consider approach to exercise (full market/auction/bespoke) Request for proposal use summary data to obtain high level estimated quote complex benefit structures could be simplified at this point typically invite three to five providers to quote Final quotation (up to eight weeks) provide sufficient scheme information and data to allow providers to produce accurate quotations record and circulate all updates and agreed assumptions to ensure consistency of quotations derive shortlist based on all relevant factors engage formally into a mutual exclusivity agreement Implementation Pre-Implementation Implementation Ongoing administration and services (if appropriate) contract negotiation asset transition/disinvestment arrangements preparing for the transaction data cleansing/verification data migration final premium payment shadow administration in buy-in policy administration in buyout policy holder options valuations monitoring and reporting member communication

9 ABI GOOD PRACTICE GUIDE 9 1. Preparation for Buy-in/Buyout The key to a successful transfer is to engage all the relevant parties from the very early stages, ensuring everyone is on the same level with regard to data preparation, the review of investment strategies and the consideration of legal aspects. Transferring pension risks can be complex and involve many stakeholders. The key to success is the right preparation. This chapter highlights the main actions and issues that need to be considered. Engagement of all stakeholders from the outset is essential. A working group consisting of the key stakeholders will help the process run smoothly and efficiently. One of the first steps is to understand your scheme in terms of the risks faced and their concentrations, the objectives of the different stakeholders, the level of funding of the scheme and what, if any, extra funding is available. Once this is understood it should be possible to outline the aims of the derisking in the context of any financial and other constraints, to ensure that the de-risking will deliver the outcome sought. Accurate scheme data is essential to pricing of de-risking solutions. As part of the preparation prior to approaching the market for quotations, an audit of the scheme data could be performed and cleansing considered where data is found to be inaccurate. These steps will improve the speed of response and comparability of quote from solution providers but will need to be balanced against the potential costs of delaying a de-risking. Another factor to consider is the investment strategy of the scheme, as the right strategy put in place before de-risking can reduce the net cost. The trustees must be legally able to complete a de-risking and not prevented in any way by the Trust Deed, the scheme rules or legislation. The exact benefits provided under the scheme must be defined. Where there are discretionary benefits, decisions need to be made on whether, and how, these are to be converted into entitlements as insurers will not normally take on discretionary powers. A feasibility study at the outset provides the opportunity to design and test a solution while ensuring that valuable time and resources are not wasted. This will ensure the support of all stakeholders is obtained before a decision to proceed (in principle) is reached and greater expense incurred. Pension risk transfer, through an insured solution such as a Buy-in or Buyout, is likely to be a new and potentially one-off experience for many trustees and employers. It typically involves a complex set of tasks and considerations requiring interaction between the employer, trustees, their respective advisers, and at a later stage, the insurer of choice. The key to a successful transfer is to engage all the relevant parties from the very early stages, ensuring everyone is on the same level with regard to data preparation, the review of investment strategies and the consideration of legal aspects. The following section will outline these considerations in further detail.

10 10 ABI GOOD PRACTICE GUIDE 1.1. Stakeholder engagement One of the greatest challenges in a Buy-in or Buyout process is to ensure agreement between the various stakeholders involved. These can range from external service providers, such as investment managers and administrators, to internal parties, such as trustees and employers. Each of the key stakeholders involved plays an important role in the process as outlined below: Trustees The trustees are the key stakeholder in the risk transfer process as they are the party who will decide whether to go ahead with the Buy-in or Buyout and will, therefore, select the insurer with whom the pension benefits are to be secured. Employer The employer is often required to contribute towards the Buyout or Buy-in premium or other de-risking costs and thus is an important stakeholder in de-risking. Insurers may be less willing to engage in de-risking discussions where an employer has not been involved in the overall process. Advisers External stakeholders are also critical to the success of the transition. They are best involved from an early stage. Asset structure is a key part of any bulk annuity transaction so investment consultants can play an important role in assisting trustees in this area. Third party administrators can also be heavily involved, from providing the data extract on which the insurer will provide their quotation to liaising with the insurer through data cleansing and on-going administration. One method of achieving consensus efficiently is to establish a de-risking working group or subcommittee, which includes representation from the key stakeholders. It would be advisable to put in place a delegated structure that avoids the need to consult the full Trustee Board at every stage. Ideally, the committee would have an agreed terms of reference in place under which they can act, with appropriate delegated authority. This subcommittee would often ask for a feasibility study to consider the various issues and assess the overall suitability of an insured solution for pension risk transfer. A specialist benefit consultant is often well placed to help trustees with this work, which can save considerable time and energy in the long run Understanding the scheme and aims Once a subcommittee has been established, with the explicit task of investigating de-risking options for the pension scheme, one of its first tasks will be to understand all the various risks faced by the scheme and any risk concentration that specifically needs to be addressed. Additional factors that will need to be considered are the risk management, financial and business objectives of the trustees and the employer, funding levels of the scheme and any potential additional funding requirement.

11 ABI GOOD PRACTICE GUIDE 11 To get an accurate view of the scheme s funding position, the trustees should review the assumptions used in the valuation of the scheme s liabilities, particularly if the mortality assumptions have not been reviewed for some time. An understanding of the scheme s main risks as well as an accurate valuation of the scheme s assets and liabilities should be sufficient for the trustees to make an informed decision whether to consider a Buy-in or Buyout. Larger pension schemes especially may also wish to consider insuring a subset of liabilities in order to de-risk in stages, either through a quota share approach (for example a percentage of each member s liability) or by segmenting the population by age, category etc. Following a valuation of the scheme s assets and liabilities, it is then important for the trustees and employer to outline their aims vs. any constraints with regard to the de-risking exercise. This will have an impact on the structure of the overall exercise, for example, whether or not full Buyout will become a short or medium term aim and whether there are any restrictions on funding available from the employer which might limit the extent of the exercise. Similarly, the employer may have specific aims which have an impact on timing, i.e. completing the exercise before the financial year-end. Trustees should discuss these aims and constraints with their benefit consultant at the start of the process to ensure that the exercise will deliver what is required The importance of accurate data As trustees are well aware, especially given the focus of the Pensions Regulator, good data is crucial throughout the life of a pension scheme. See also the Pensions Regulator s Guidance on Record Keeping: Poor record keeping can lead to significant additional costs in a number of areas including administration, inaccurate actuarial valuations and even claims from disgruntled members. For many schemes, the full extent of poor record keeping is only realised after a major event in the scheme s lifecycle (for example, when a scheme derisks or a wind-up is triggered). However, data cleansing at that point is often too late. In preparation of a Buy-in or Buyout, trustees should carry out a thorough audit of scheme data to ensure member records are accurate and up-to-date. Where issues exist, data cleansing should be considered prior to approaching the market for quotations. This is because poor data can have a number of effects on the quote process. Inaccurate data can increase the time it takes for trustees to receive quotations from insurers. It can also affect the ability of an insurer to issue a formal quotation if, for example, some data items such as postcodes are incomplete.

12 12 ABI GOOD PRACTICE GUIDE When reviewing investment strategy the scheme needs to balance the long term investment strategy vs. potential shorter term transactional requirements. Moreover, if lack of data requires insurers to make assumptions on data and/ or benefits, which may differ across providers, comparing quotations can be a near impossible task. An insurer may also add a risk premium to the quotation to account for the potential additional costs resulting from poor data. Data cleansing is, therefore, crucial to ensure that trustees can run a competitive quotation process. However, the benefits of data cleansing should be weighed against the cost of delaying de-risking activities Investment strategy review In a phased approach to de-risking, an investment strategy review is typically one of the first steps taken by pension schemes. When reviewing investment strategy the scheme needs to balance the long term investment strategy vs. potential shorter term transactional requirements. For instance, obtaining advice on portfolio structures that can more easily be transferred to an insurer prior to a Buy-in or Buyout may be valuable. Investment consultants can assist schemes to put in place an investment strategy that helps to ensure that scheme assets are structured to closely mirror Buyout pricing, for example by moving to less risky investments. This way of de-risking would stabilise the funding level and also assist with an in-specie asset transfer as part of a partial or full payment of the agreed premium for risk transfer. This can potentially reduce the net cost of Buy-in or Buyout Legal considerations A trustee s role is to act prudently and responsibly whilst operating the scheme in accordance with the scheme rules. Trustees must at all times ensure they look after the best interests of their members. While there are many areas of consideration, ultimately the role comes down to protecting the benefit promises made to the scheme beneficiaries. That is why it is important that the trustees are knowledgeable about all the features outlined in their scheme s documents. Before Buy-in or Buyout, the trustees should be able to demonstrate that they have the power to complete the transaction and take legal advice on any restrictions under the Trust Deed and rules of the scheme or under pension legislation. The trustees should also review the specific benefits that are to be secured. Where the benefit structure is complex, for example with different rates of annual pension increases due to changes over time, the trustees should determine if this contractual arrangement needs to be replicated or whether there are alternative solutions that could be considered.

13 ABI GOOD PRACTICE GUIDE 13 Trustees should note that the current uncertainty surrounding the Government s change in policy on the inflation measure from RPI to CPI will have some impact on investment strategy and de-risking. While RPI hedging is commonplace, there is no market yet in CPI linked instruments. In the meantime, trustees may wish to ensure that Buy-in contracts entered into have the flexibility to be restructured for CPI in future and any cost savings returned to the policyholder. The DWP issued a Consultation document on the change from RPI to CPI in December 2010, so there is less uncertainty now than there was, but still trustees will have to await final legislation before definitive answers can be given. It is particularly important to consider benefit features which are specifically at the trustees discretion. The insurer will not usually take on any discretionary powers so a decision is needed as to whether to secure the discretionary benefits as an entitlement (for example paid for in the premium) or to stop the discretionary benefit entirely. Ideally, the approach to discretionary decisions should be determined at the start of the Buy-in/Buyout process with details of these features to be agreed as early as possible during the set-up phase and then accurately implemented in a timely fashion. The trustees will also need to consider whether there are any aspects of their pension scheme or de-risking activity that would necessitate special requirements. For instance, in the case of a Buy-in, although insurers are required by regulation to hold prudent reserves and additional capital to back their guarantees, the scheme may desire additional security where significant liabilities are secured under a standalone insurance policy. (See section 4.3 for further discussion of collateralisation.) Where a Buyout relates to only one particular subset of the scheme (partial Buyout), trustees will need to consider the impact this may have on remaining members who will not transfer to the insurer. Two main points should be considered here: Protection offered by the insurer will usually provide more security vs. protection offered by the residual assets left in the trust. Cost of securing the insurance may outstrip the relevant member s fair share of the assets of the scheme. One way to address this perceived inequity is to establish that there is a sufficiently strong employer to back the remaining pension promise, as well as asking the employer to pay part of the premium so that only a fair share of the scheme s assets are used. In the event of a weak employer covenant, it is important to ensure that non-insured members do not lose out.

14 14 ABI GOOD PRACTICE GUIDE Feasibility provides the opportunity to design and test a solution and ensure the support of all stakeholders before incurring significant expense Feasibility Buyout exercises can be derailed because of failure to set out a process and lack of understanding. A feasibility study at the outset helps to ensure that valuable time and resources are not wasted. Establishing that buyout is the right solution and understanding how the process will run leads to no surprises and gives greater confidence in the decision to proceed. Trustees will usually engage an adviser with the necessary skills and experience to help with feasibility. Having completed a feasibility study, trustees will find insurers more willing to be involved in the quotation process. It is important that the trustees consider the pros and cons of the de-risking options available so that the decision to buy out is right for the scheme and, once made, focus can be on getting the right deal at the right time. There are several variations of buyout solution and trustees should work with their adviser to explore options to fit objectives and budget. Feasibility provides the opportunity to design and test a solution and ensure the support of all stakeholders before incurring significant expense. Finally, a feasibility study allows trustees to consider their budget for the Buyout exercise, including adviser costs and management time, as well as the potential premium for the policy. This means trustees can fairly accurately assess the affordability of buyout and structure the exercise to suit the size and financial circumstances of the scheme and will be in a position to make a decision in principle to proceed with Buyout.

15 ABI GOOD PRACTICE GUIDE Approach Once the decision in principle is made to proceed with buyout, the trustees should agree the approach they will take. Trustees should also set out the objective criteria on which they will base their decision on the preferred provider. Trustees should take advice on the current state of the market and the providers, and consider which insurers are likely to have the capacity and expertise to deliver the best solution when needed. A budget for the exercise should be set out and monitored. This should include the time expected of trustees and scheme advisers as well as the likely overall time to conclude a deal. Roles and responsibilities should also be set out including, for example, who can make decisions and how the final decision on preferred provider will be made. Once affordability has been determined and a decision in principle is made to proceed with buyout, the trustees should agree the approach they will take. This will include whether a full market review will be needed or if a more focused exercise is appropriate to the circumstances. For example, will there be an auction approach based on an initial level playing field for all providers or will trustees seek a bespoke solution to fit their needs? In the latter, a smaller number of providers will be involved and perhaps only one for an innovative solution. Trustees should also set out the criteria on which they will base their decision on preferred provider, as this ensures the exercise remains focused on factors important to the stakeholders and the exercise will be more efficient and robust. It is important than these factors are adequately considered in advance to ensure that the questions asked of providers are appropriate from the outset. It is also helpful to ensure providers are aware of the important factors in the selection and that the criteria do not change as the exercise proceeds. The most common criteria for selection are: Price Structure of offer Ability and flexibility to deal with scheme benefits Financial security of provider Flexibility and efficiency in asset transfer Execution and transition capability Service to members Administration capability and track record Contract/policy conditions

16 16 ABI GOOD PRACTICE GUIDE Some criteria may be more important than others, for example, price may be by far the most important and trustees may wish to weight factors accordingly. In this planning stage, the trustees should take advice on the current state of the market and the providers, and consider which insurers are likely to have the capacity and expertise to deliver the best solution when needed. The likely timescales should be set out, especially where timing will impact on asset valuations, annuity pricing and resource availability. It is important that the subcommittee is able to demonstrate to insurers that a structured timetable is in place for the process. This allows insurers to plan resource appropriately and shows that the trustees are seriously considering de-risking. Wherever possible, timing should be set to take account of major scheme exercises like a valuation or change of advisers or suppliers. The buyout adviser can help with project planning and management, unless one of the trustees has particular expertise. As it is very easy to spend a lot of valuable scheme monies on large exercises, a realistic budget for the exercise should be set, agreed by all and monitored by the trustees. This should include the time expected of trustees and scheme advisers as well as the likely overall time to conclude a deal. Roles and responsibilities should also be set out, for example, who can make decisions and how will the final decision on preferred provider be made? If a full trustee meeting will be needed, it should be arranged well in advance.

17 ABI GOOD PRACTICE GUIDE Request for Proposal Once the approach has been decided, the next step is to prepare a request for a bespoke proposal. Typically you might approach 3 to 5 insurers at this stage for an initial quote. Details of the data needed by the insurers can be found at Pensions_and_Insurance_Data_Requirements_a83.aspx Quotations will be more easily comparable if the data provided is as complete as possible and all insurers are asked to use the same key dates and assumptions in their calculations. Complex benefit requirements can be simplified at this stage, though you would want to check that each insurer could cater for the more complex benefit structure if they were successful. Typically the timescale for an initial quotation is 3-4 weeks, with a more accurate quotation taking up to 8 weeks. The next step is to commence work to prepare a request for a proposal or quotation. It would be typical to approach 3 to 5 insurers at the initial quote stage. The insurer will require information and scheme data in order to produce the quotation as, even at this stage, the quotation is bespoke to the scheme. These requirements can be lengthy and complex and are comprehensively covered in the ABI Defined Benefit Pensions and Insurance: Data Requirements document: and_insurance_data_requirements_a83.aspx If information provided is incomplete or unclear, insurers may make their own assumptions and quotations may, therefore, not be consistent between insurers. A good way of minimising the risk of each insurer making different assumptions is to record and circulate to every insurer any updates or amendments to the original information/specification provided. This should ensure that each insurer has a consistent set of information to use. Trustees should ensure that Data Protection Act 1998 requirements are covered when using identifiable member data for quotations. To help compare like for like, all insurers being asked to quote should be asked to use the same key dates in their calculations (e.g. market conditions date, premium payment date, risk transfer date). It is also good practice to specify any key assumptions you want them to make on missing data elements.

Pensions Conference 2013 Buy-ins and buyouts: what should really matter to pension schemes?

Pensions Conference 2013 Buy-ins and buyouts: what should really matter to pension schemes? Pensions Conference 2013 Buy-ins and buyouts: what should really matter to pension schemes? Ben Stone, Towers Watson Sammy Cooper-Smith, Rothesay Life 06 June 2013 Agenda Setting the scene why do pension

More information

Universities Superannuation Scheme 2014 Actuarial Valuation

Universities Superannuation Scheme 2014 Actuarial Valuation Universities Superannuation Scheme 2014 Actuarial Valuation A consultation on the proposed assumptions for the scheme s technical provisions and recovery plan October 2014 Contents Introduction 3 Background

More information

Questions and Answers Section A provided at the Forums

Questions and Answers Section A provided at the Forums Questions and Answers Section A provided at the Forums HEADLINES 1. Your pension will continue to be paid on the same day 2. Your pension will continue to be paid by the current administrators, Ensign

More information

NAPF - PENSION BUY-INS AND BUY-OUTS. Harry Harper, FIA. June 2014

NAPF - PENSION BUY-INS AND BUY-OUTS. Harry Harper, FIA. June 2014 NAPF - PENSION BUY-INS AND BUY-OUTS Harry Harper, FIA June 2014 Buy-ins and buy-outs Agenda Insurance market development in 2014 Bulk annuity and investments Purchasing a bulk annuity earlier Data preparation

More information

Creating a Secondary Annuity Market: a response by the National Association of Pension Funds

Creating a Secondary Annuity Market: a response by the National Association of Pension Funds Creating a Secondary Annuity Market: a response by the National Association of Pension Funds June 2015 www.napf.co.uk Creating a secondary annuity market: a response by the NAPF Contents Executive Summary

More information

THE INSURANCE BUSINESS (SOLVENCY) RULES 2015

THE INSURANCE BUSINESS (SOLVENCY) RULES 2015 THE INSURANCE BUSINESS (SOLVENCY) RULES 2015 Table of Contents Part 1 Introduction... 2 Part 2 Capital Adequacy... 4 Part 3 MCR... 7 Part 4 PCR... 10 Part 5 - Internal Model... 23 Part 6 Valuation... 34

More information

A specialist provider of pension risk management solutions

A specialist provider of pension risk management solutions A specialist provider of pension risk management solutions Our solutions are backed by our strong capital position and financial strength, and built upon over 90 years of pension risk management experience

More information

Alternative Settlement Methods for Hypothetical Wind-Up and Solvency Valuations

Alternative Settlement Methods for Hypothetical Wind-Up and Solvency Valuations Educational Note Alternative Settlement Methods for Hypothetical Wind-Up and Solvency Valuations Committee on Pension Plan Financial Reporting September 2013 Document 213082 Ce document est disponible

More information

a true partnership approach Buy-outs and buy-ins report 2014

a true partnership approach Buy-outs and buy-ins report 2014 a true partnership approach 3 Introduction 4 Buy-outs and buy-ins market activity 5 Changing market conditions potential opportunities 8 Medical underwriting 9 Assessing a transaction 11 Are insurers safe?

More information

KEY FEATURES OF YOUR BUYOUT BOND ILLUSTRATION KEY FEATURES. and Conditions, available from your financial adviser.

KEY FEATURES OF YOUR BUYOUT BOND ILLUSTRATION KEY FEATURES. and Conditions, available from your financial adviser. 00000 Old Mutual Wealth Life Assurance Limited is a provider of long-term life assurance. It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential

More information

For the Trustees of Defined Benefit Pension Schemes and their Investment Consultants Only.

For the Trustees of Defined Benefit Pension Schemes and their Investment Consultants Only. LGIM SOLUTIONS LEGAL & GENERAL INVESTMENT MANAGEMENT Buy-Out Aware. For the Trustees of Defined Benefit Pension Schemes and their Investment Consultants Only. Preparing for the endgame: a fund range specifically

More information

Response to consultation on the exposure draft of the SORP: Financial Reports of Pension Schemes

Response to consultation on the exposure draft of the SORP: Financial Reports of Pension Schemes Response to consultation on the exposure draft of the SORP: Financial Reports of Pension Schemes About First Actuarial This response is provided by First Actuarial LLP. First Actuarial is a consultancy

More information

GUIDELINE NO. 7 PENSION PLAN FUNDING POLICY GUIDELINE

GUIDELINE NO. 7 PENSION PLAN FUNDING POLICY GUIDELINE GUIDELINE NO. 7 PENSION PLAN FUNDING POLICY GUIDELINE November 15, 2011 TABLE OF CONTENTS CONTEXT FOR THE GUIDELINE... 3 Pension Plan Funding Principles and Objectives... 3 Purpose of a Funding Policy...

More information

Bulk annuity transactions - insurer financial strength and beyond

Bulk annuity transactions - insurer financial strength and beyond Bulk annuity transactions - insurer financial strength and beyond More and more defined benefit pension schemes are securing liabilities through a buy-in or buy-out contract in order to manage their costs

More information

Measurement of Banks Exposure to Interest Rate Risk and Principles for the Management of Interest Rate Risk respectively.

Measurement of Banks Exposure to Interest Rate Risk and Principles for the Management of Interest Rate Risk respectively. INTEREST RATE RISK IN THE BANKING BOOK Over the past decade the Basel Committee on Banking Supervision (the Basel Committee) has released a number of consultative documents discussing the management and

More information

Preparing for and negotiating Insurance buy ins and buy outs

Preparing for and negotiating Insurance buy ins and buy outs Preparing for and negotiating Insurance buy ins and buy outs Speakers Alison Brown Samantha Brown Partner, Herbert Smith Freehills Partner, Herbert Smith Freehills Buy ins and buy outs Setting the Scene

More information

Abbey Life Assurance Company Limited Participating Business Fund

Abbey Life Assurance Company Limited Participating Business Fund Abbey Life Assurance Company Limited Participating Business Fund Principles and of Financial Management (PPFM) 1 General... 2 1.1 Introduction... 2 1.2 The With-Profits Policies... 2 2 Structure of these

More information

Real Return VII: The Euromoney Inflation Linked Products Conference (May 2010) Longevity. Paul Kitson FIA. 2010 Towers Watson. All rights reserved.

Real Return VII: The Euromoney Inflation Linked Products Conference (May 2010) Longevity. Paul Kitson FIA. 2010 Towers Watson. All rights reserved. Real Return VII: The Euromoney Inflation Linked Products Conference (May 2010) Longevity Paul Kitson FIA 2010 Towers Watson. All rights reserved. Agenda 1.Measuring longevity 2.The UK longevity hedging

More information

Delayed Pension Payment Bulk Purchase Annuity

Delayed Pension Payment Bulk Purchase Annuity Delayed Pension Payment Bulk Purchase Annuity For employee benefit consultants, pension professionals and financial advisers only. Not approved for use with pension scheme members. Contents Delayed Pension

More information

Nigel Nunoo, CFA, FSA, MAAA

Nigel Nunoo, CFA, FSA, MAAA PENSION RISK TRANSFER Nigel Nunoo, CFA, FSA, MAAA Agenda Pension Risk Transfer (PRT) Business Opportunity Background & Context Market Opportunity UK versus US PRT Products Pension Risk Reduction Path &

More information

Pension Protection Fund. Statement of Investment Principles

Pension Protection Fund. Statement of Investment Principles Pension Protection Fund Statement of Investment Principles November 2012 Contents 1 Introduction 3 2 Governance of the Pension 4 Protection Fund 3 Funding Objective 6 4 Risk measurement and management

More information

British Steel Pension Scheme: Public Consultation Response from the Pension Protection Fund

British Steel Pension Scheme: Public Consultation Response from the Pension Protection Fund British Steel Pension Scheme: Public Consultation Response from the Pension Protection Fund Summary The PPF recognises the Government s commitment to securing a sustainable future for the UK steel industry

More information

Consultation on financial management guidelines for defined benefit schemes

Consultation on financial management guidelines for defined benefit schemes Consultation on financial management guidelines for defined benefit schemes Introduction Trustees of defined benefit (DB) schemes are faced with complicated financial responsibilities, and this requires

More information

FIDUCIAN AUSTRALIAN SHARES FUND

FIDUCIAN AUSTRALIAN SHARES FUND PRODUCT DISCLOSURE STATEMENT FIDUCIAN AUSTRALIAN SHARES FUND ARSN 093 542 271 2 MARCH 2015 This Product Disclosure Statement (PDS) provides a summary of significant information about the Fiducian Australian

More information

THE AUDIT OF PENSION SCHEMES

THE AUDIT OF PENSION SCHEMES THE AUDIT OF PENSION SCHEMES This helpsheet is designed to assist firms in the audit of occupational pension schemes in the United Kingdom. Pension scheme audits can vary in size and complexity, and there

More information

Sanlam Life Insurance Limited Principles and Practices of Financial Management (PPFM) for Sanlam Life Participating Annuity Products

Sanlam Life Insurance Limited Principles and Practices of Financial Management (PPFM) for Sanlam Life Participating Annuity Products Sanlam Life Insurance Limited Principles and Practices of Financial Management (PPFM) for Sanlam Life Participating Annuity Products Table of Contents Section 1 - Information 1.1 Background 2 1.2 Purpose

More information

A Guide to Understanding Group Risk Insurance

A Guide to Understanding Group Risk Insurance A Guide to Understanding Group Risk Insurance This guide has been produced by Group Risk Development (GRiD) with the support of the Chartered Institute of Procurement and Supply (CIPS). CIPS members can

More information

Sanlam Life Insurance Limited Principles of Financial Management (PFM) for Sanlam Life Linked and Market- Related Products

Sanlam Life Insurance Limited Principles of Financial Management (PFM) for Sanlam Life Linked and Market- Related Products Version 5: June 2013 Sanlam Life Insurance Limited Principles of Financial Management (PFM) for Sanlam Life Linked and Market- Related Products Table of Contents Section 1 - Introduction 1.1 Background

More information

A GUIDE TO RETIREMENT ANNUITY TRUST SCHEMES ( RATS ) IN GUERNSEY

A GUIDE TO RETIREMENT ANNUITY TRUST SCHEMES ( RATS ) IN GUERNSEY A GUIDE TO RETIREMENT ANNUITY TRUST SCHEMES ( RATS ) IN GUERNSEY TABLE OF CONTENTS INTRODUCTION... 3 WHAT IS A RETIREMENT ANNUITY TRUST SCHEME?... 3 THE TRUSTEES... 4 APPROVAL... 4 TRANSFERS FROM OTHER

More information

Risk transfer and the risks it creates: a prudential regulatory perspective

Risk transfer and the risks it creates: a prudential regulatory perspective 1 Risk transfer and the risks it creates: a prudential regulatory perspective Speech given by Andrew Bulley, Director of Life Insurance, Prudential Regulation Authority The 2016 Bulk Annuities and Longevity

More information

FIDUCIAN TECHNOLOGY FUND

FIDUCIAN TECHNOLOGY FUND PRODUCT DISCLOSURE STATEMENT FIDUCIAN TECHNOLOGY FUND ARSN 093 544 337 2 MARCH 2015 This Product Disclosure Statement (PDS) provides a summary of significant information about the Fiducian Technology Fund

More information

Life Insurance (prudential standard) determination No. 7 of 2010

Life Insurance (prudential standard) determination No. 7 of 2010 Life Insurance (prudential standard) determination No. 7 of 2010 Prudential Standard LPS 2.04 Solvency Standard Life Insurance Act 1995 I, John Roy Trowbridge, Member of APRA: (a) (b) under subsection

More information

Rating Methodology for Domestic Life Insurance Companies

Rating Methodology for Domestic Life Insurance Companies Rating Methodology for Domestic Life Insurance Companies Introduction ICRA Lanka s Claim Paying Ability Ratings (CPRs) are opinions on the ability of life insurance companies to pay claims and policyholder

More information

ACCOUNTING STANDARDS BOARD DECEMBER 2004 FRS 27 27LIFE ASSURANCE STANDARD FINANCIAL REPORTING ACCOUNTING STANDARDS BOARD

ACCOUNTING STANDARDS BOARD DECEMBER 2004 FRS 27 27LIFE ASSURANCE STANDARD FINANCIAL REPORTING ACCOUNTING STANDARDS BOARD ACCOUNTING STANDARDS BOARD DECEMBER 2004 FRS 27 27LIFE ASSURANCE FINANCIAL REPORTING STANDARD ACCOUNTING STANDARDS BOARD Financial Reporting Standard 27 'Life Assurance' is issued by the Accounting Standards

More information

THE INSIDER S GUIDE TO THE CANADIAN ANNUITY MARKET

THE INSIDER S GUIDE TO THE CANADIAN ANNUITY MARKET THE INSIDER S GUIDE TO THE CANADIAN ANNUITY MARKET Hugh Kerr Vice- President & Associate General Counsel Heather Wolfe Managing Director, Client Relationships Defined Benefit Solutions Association of Canadian

More information

IRSG Opinion on Joint Discussion paper on Key Information Document (KID) for Packaged Retail and Insurance-based Investment Products (PRIIPs)

IRSG Opinion on Joint Discussion paper on Key Information Document (KID) for Packaged Retail and Insurance-based Investment Products (PRIIPs) EIOPA-IRSG-15-03 IRSG Opinion on Joint Discussion paper on Key Information Document (KID) for Packaged Retail and Insurance-based Investment Products (PRIIPs) Executive Summary It is of utmost importance

More information

ACCOUNTING STANDARDS BOARD FINANCIAL CAPITAL MANAGEMENT DISCLOSURES

ACCOUNTING STANDARDS BOARD FINANCIAL CAPITAL MANAGEMENT DISCLOSURES ACCOUNTING STANDARDS BOARD FINANCIAL CAPITAL MANAGEMENT DISCLOSURES DECEMBER 2010 Contents Highlights One - Introduction 1 Two - Market feedback 2 Three - Business review disclosures 3 Four - IFRS disclosures

More information

Understanding unit-linked funds

Understanding unit-linked funds Understanding unit-linked funds Contents 02 What types of unit linked funds are there? 03 How does Standard Life calculate the value of its funds? 05 How are the prices of the units calculated? 06 How

More information

MEDICALLY UNDERWRITTEN BULK ANNUITIES

MEDICALLY UNDERWRITTEN BULK ANNUITIES seeing retirement differently NOT FOR RETAIL CLIENTS MEDICALLY UNDERWRITTEN BULK ANNUITIES CELEBRATING CELEBRATING seeing retirement differently YEARS sin ce 1 9 9 5 YEARS sin ce 1 9 9 5 PARTNERSHIP We

More information

Pension Liability Risks: Manage or Sell?

Pension Liability Risks: Manage or Sell? Pension Liability Risks: Manage or Sell? David Blake Pensions Institute Cass Business School The views expressed in this paper are those of the author(s) only, and the presence of them, or of links to

More information

10/04/2015. Medically underwritten bulk annuities. What is a medically underwritten bulk annuity? Buy-ins the ultimate risk reduction

10/04/2015. Medically underwritten bulk annuities. What is a medically underwritten bulk annuity? Buy-ins the ultimate risk reduction Medically underwritten bulk annuities Michael Anderson Hymans Robertson Andy Morley Partnership Assurance 8 May 015 What is a medically underwritten bulk annuity? Bulk annuities () have been used for managing

More information

Summary of the Scheme and of the Independent Expert's Report BACKGROUND

Summary of the Scheme and of the Independent Expert's Report BACKGROUND TRANSFER OF ANNUITY BUSINESS OF THE EQUITABLE LIFE ASSURANCE SOCIETY TO CANADA LIFE LIMITED Summary of the Scheme and of the Independent Expert's Report BACKGROUND It is proposed that certain annuity business

More information

GUIDANCE NOTE 252 ACTUARIAL APPRAISALS OF LIFE INSURANCE BUSINESS

GUIDANCE NOTE 252 ACTUARIAL APPRAISALS OF LIFE INSURANCE BUSINESS THE INSTITUTE OF ACTUARIES OF AUSTRALIA A.C.N. 000 423 656 GUIDANCE NOTE 252 ACTUARIAL APPRAISALS OF LIFE INSURANCE BUSINESS PURPOSE This guidance note sets out the considerations that bear on the actuary's

More information

Collective Retirement Account

Collective Retirement Account Key features of the Collective Retirement Account The Financial Conduct Authority is a financial services regulator. It requires us, Old Mutual Wealth, to give you this important information to help you

More information

Accounting Q&As. 1. Have accounts at the last accounting date been audited and signed off?

Accounting Q&As. 1. Have accounts at the last accounting date been audited and signed off? Accounting Q&As My scheme s just entered an assessment period what s the first accounting action I need to take? It depends where your scheme is in the annual cycle of accounts preparation and audit, so

More information

Annuity Market Quarterly Update

Annuity Market Quarterly Update Annuity Market Quarterly Update November 2010 2010 Aon Corporation Brief Description: Despite the rebound in the third quarter, many pension plans remain underfunded. On top of that, annuity interest rates

More information

Our Ref: JM/JB/4.7 June 16 th 2015

Our Ref: JM/JB/4.7 June 16 th 2015 Email: Annuity.Consultation2015@hmtreasury.gsi.gov.uk Annuity Consultation Insurance and UK Regulatory Authorities Team HM Treasury Horse Guards Road London SW1A Our Ref: JM/JB/4.7 June 16 th 2015 Dear

More information

Key developments in Pensions De-risking. October 2014

Key developments in Pensions De-risking. October 2014 Key developments in Pensions De-risking October 2014 Transfer Value Exercises: the key points The March 2014 budget was a very exciting development for any sponsor of a DB Scheme Transfer value exercises

More information

Milliman Client Report

Milliman Client Report Milliman Client Report The Part VII transfer of the long-term insurance business of Rothesay Assurance Limited to Rothesay Life Limited. The policyholders summary of the report of the Independent Expert

More information

Actuarial Report. On the Proposed Transfer of the Life Insurance Business from. Asteron Life Limited. Suncorp Life & Superannuation Limited

Actuarial Report. On the Proposed Transfer of the Life Insurance Business from. Asteron Life Limited. Suncorp Life & Superannuation Limited Actuarial Report On the Proposed Transfer of the Life Insurance Business from Asteron Life Limited to Suncorp Life & Superannuation Limited Actuarial Report Page 1 of 47 1. Executive Summary 1.1 Background

More information

Longevity risk. What do South African and UK retirement frameworks have in common??

Longevity risk. What do South African and UK retirement frameworks have in common?? Longevity risk Over the past 50 years life expectancy in the UK has increased by up to 10 years Longevity is the result of a complex interaction of various factors such as increased prosperity, changes

More information

A New Chapter in Life Insurance Capital Requirements

A New Chapter in Life Insurance Capital Requirements A New Chapter in Life Insurance Capital Requirements Remarks by Mark Zelmer Deputy Superintendent Office of the Superintendent of Financial Institutions Canada (OSFI) to the CFA Society Toronto Toronto,

More information

Charities and investment matters: a guide for trustees

Charities and investment matters: a guide for trustees Charities and investment matters: a guide for trustees October 2011 Contents 1. Introduction 2 2. Executive summary 4 3. The legal framework for financial investment 6 4. Setting a charity s investment

More information

IFSA Guidance Note No. 21.00

IFSA Guidance Note No. 21.00 IFSA Guidance Note No. 21.00 Calculators Best Practice Guidance April 2007 Main features of this Guidance Note are: Highlight the importance of calculators in assisting users to make informed financial

More information

Life Insurance Business

Life Insurance Business Accounting Standard AASB 1038 November 1998 Life Insurance Business Issued by the Australian Accounting Standards Board Obtaining a Copy of this Accounting Standard Copies of this Standard are available

More information

Principles of Financial Management for Sanlam Employee Benefits Provider Pension Products. Employee Benefits: Investments

Principles of Financial Management for Sanlam Employee Benefits Provider Pension Products. Employee Benefits: Investments Principles of Financial Management for Sanlam Employee Benefits Provider Pension Products Employee Benefits: Investments Contents Page Introduction 2 Background 2 Purpose of Principles and Practices of

More information

Risks and uncertainties

Risks and uncertainties Risks and uncertainties Our risk management approach We have a well-established risk management methodology which we use throughout the business to allow us to identify and manage the principal risks that

More information

for Analysing Listed Private Equity Companies

for Analysing Listed Private Equity Companies 8 Steps for Analysing Listed Private Equity Companies Important Notice This document is for information only and does not constitute a recommendation or solicitation to subscribe or purchase any products.

More information

Disclaimer. constitute legal, accounting, tax or other professional advice.

Disclaimer. constitute legal, accounting, tax or other professional advice. 13th Global Conference of Actuaries 2011 Emerging Risks Daring Solutions Pension Buy-Outs in the U it d Ki United Kingdom d Dieter Kroll General Manager Hannover Life Re International Germany February

More information

Prudent Risk Management of Variable Annuities in the US. Senior Vice President and Actuary Prudential Annuities

Prudent Risk Management of Variable Annuities in the US. Senior Vice President and Actuary Prudential Annuities Prudent Risk Management of Variable Annuities in the US Bryan Pinsky Bryan Pinsky Senior Vice President and Actuary Prudential Annuities Agenda 1. US VA market overview 2. Risks associated with living

More information

Treatment of technical provisions under Solvency II

Treatment of technical provisions under Solvency II Treatment of technical provisions under Solvency II Quantitative methods, qualitative requirements and disclosure obligations Authors Martin Brosemer Dr. Susanne Lepschi Dr. Katja Lord Contact solvency-solutions@munichre.com

More information

THE BEATLES AND PENSION RISK TRANSFER

THE BEATLES AND PENSION RISK TRANSFER THE BEATLES AND PENSION RISK TRANSFER The UK has a long history of creativity and innovation in the music industry the Beatles being a famous example. Their innovation in the pension world is perhaps a

More information

3.6. Please also note, unless your policy confirms otherwise, the rights under your policy may only be pursued in an English court.

3.6. Please also note, unless your policy confirms otherwise, the rights under your policy may only be pursued in an English court. Terms of business agreement - commercial customers M & N Insurance Service Limited Authorised and regulated by the Financial Conduct Authority No: 305837. Registered Office: 248 Hendon Way London NW4 3NL

More information

Solvency II Detailed guidance notes

Solvency II Detailed guidance notes Solvency II Detailed guidance notes March 2010 Section 1 - System of governance Section 1: System of Governance Overview This section outlines the Solvency II requirements for an effective system of governance,

More information

a true partnership approach Buy-outs and Buy-ins Report 2015

a true partnership approach Buy-outs and Buy-ins Report 2015 a true partnership approach Buy-outs and Buy-ins Report 2015 July 2015 Introduction Contents 3 Introduction 5 Buy-outs and buy-ins market activity 8 Insurer pricing - is a transaction affordable? 12 Partial

More information

INTRODUCING OUR CORPORATE INVESTMENT SERVICE C O C K BURN LUCAS INDEPENDENT FINANCIAL CONSULTING. Making your business our business

INTRODUCING OUR CORPORATE INVESTMENT SERVICE C O C K BURN LUCAS INDEPENDENT FINANCIAL CONSULTING. Making your business our business INTRODUCING OUR CORPORATE INVESTMENT SERVICE C O C K BURN LUCAS INDEPENDENT FINANCIAL CONSULTING Making your business our business About Us Cockburn Lucas IFC Limited was established in 1997 to provide

More information

PRACTICE NOTE 22 THE AUDITORS CONSIDERATION OF FRS 17 RETIREMENT BENEFITS DEFINED BENEFIT SCHEMES

PRACTICE NOTE 22 THE AUDITORS CONSIDERATION OF FRS 17 RETIREMENT BENEFITS DEFINED BENEFIT SCHEMES PRACTICE NOTE 22 THE AUDITORS CONSIDERATION OF FRS 17 RETIREMENT BENEFITS DEFINED BENEFIT SCHEMES Contents Introduction Background The audit approach Ethical issues Planning considerations Communication

More information

BUY-INS AND BUYOUTS. DAVID COLLINSON HEAD OF STRATEGY Pension Insurance Corporation

BUY-INS AND BUYOUTS. DAVID COLLINSON HEAD OF STRATEGY Pension Insurance Corporation BUY-INS AND BUYOUTS DAVID COLLINSON HEAD OF STRATEGY Pension Insurance Corporation February 2015 Agenda Who is PIC? What is a Buy-in and a Buyout? Why do one and what does it mean? What drives Insurer

More information

JOHN RALFE CONSULTING

JOHN RALFE CONSULTING Mr Andrew Lennard Accounting Standards Board Aldwych House 71-91 Aldwych London WC2B 4HN July 14th 2008 Dear Andrew Discussion Paper The Financial Reporting of Pensions January 2008 As you know I was a

More information

FINANCIAL REPORTING COUNCIL AN UPDATE FOR DIRECTORS OF LISTED COMPANIES: GOING CONCERN AND LIQUIDITY RISK

FINANCIAL REPORTING COUNCIL AN UPDATE FOR DIRECTORS OF LISTED COMPANIES: GOING CONCERN AND LIQUIDITY RISK FINANCIAL REPORTING COUNCIL AN UPDATE FOR DIRECTORS OF LISTED COMPANIES: GOING CONCERN AND LIQUIDITY RISK NOVEMBER 2008 Contents Page One Introduction 1 Two Accounting requirements with respect to going

More information

GSK Pension Scheme ( the Scheme ) Statement of Investment Principles

GSK Pension Scheme ( the Scheme ) Statement of Investment Principles GSK Pension Scheme ( the Scheme ) Statement of Investment Principles This Statement of Investment Principles (SIP) covers the defined benefit and the defined contribution sections of the Scheme. It is

More information

BRIEFING NOTE. With-Profits Policies

BRIEFING NOTE. With-Profits Policies BRIEFING NOTE With-Profits Policies This paper has been prepared by The Actuarial Profession to explain how withprofits policies work. It considers traditional non-pensions endowment policies in some detail

More information

MERCHANT NAVY OFFICERS PENSION FUND STATEMENT OF INVESTMENT PRINCIPLES

MERCHANT NAVY OFFICERS PENSION FUND STATEMENT OF INVESTMENT PRINCIPLES MERCHANT NAVY OFFICERS PENSION FUND STATEMENT OF INVESTMENT PRINCIPLES Introduction The main purpose of the MNOPF is the provision of pensions for Officers in the British Merchant Navy on retirement at

More information

Defined contribution workplace pensions: The audit of charges and benefits in legacy schemes

Defined contribution workplace pensions: The audit of charges and benefits in legacy schemes Defined contribution workplace pensions: The audit of charges and benefits in legacy schemes A PROGRESS UPDATE FROM THE INDEPENDENT PROJECT BOARD July 2014 July 2014 i The audit of charges and benefits

More information

Principal risks and uncertainties

Principal risks and uncertainties Principal risks and uncertainties Our risk management approach We have a well-established risk management methodology which we use throughout the business to allow us to identify and manage the principal

More information

Challenger Guaranteed Income Fund (For IDPS investors)

Challenger Guaranteed Income Fund (For IDPS investors) Guaranteed Income Fund (For IDPS investors) Product Disclosure Statement (PDS) Dated 27 April 2012 Challenger (ARSN 139 607 122) Responsible Entity Challenger Retirement and Investment Services Limited

More information

1.0 Structure of the Investment. Financial Services Commission of Ontario Commission des services financiers de l Ontario. Investment Guidance Notes

1.0 Structure of the Investment. Financial Services Commission of Ontario Commission des services financiers de l Ontario. Investment Guidance Notes Financial Services Commission of Ontario Commission des services financiers de l Ontario SECTION: INDEX NO.: TITLE: APPROVED BY: Investment Guidance Notes IGN-001 Buy-In Annuities for Defined Benefit Plans

More information

Review of Annuity Market

Review of Annuity Market Review of Annuity Market Submission by the Society of Actuaries in Ireland February 2007 Introduction The Society of Actuaries in Ireland welcomes the opportunity to make this submission in relation to

More information

Reorganising central government. Synergy reporting for Mergers and Acquisitions

Reorganising central government. Synergy reporting for Mergers and Acquisitions Reorganising central government Synergy reporting for Mergers and Acquisitions MARCH 2010 Contents Drawing parallels with the private sector National Audit Office Synergy reporting for Mergers and Acquisitions

More information

Assumptions for Hypothetical Wind-Up and Solvency Valuations with Effective Dates Between December 31, 2013, and December 30, 2014

Assumptions for Hypothetical Wind-Up and Solvency Valuations with Effective Dates Between December 31, 2013, and December 30, 2014 Educational Note Assumptions for Hypothetical Wind-Up and Solvency Valuations with Effective Dates Between December 31, 2013, and December 30, 2014 Committee on Pension Plan Financial Reporting April 2014

More information

Havensrock Trustees Registered Group Life Assurance

Havensrock Trustees Registered Group Life Assurance Havensrock Trustees Registered Group Life Assurance Technical Guide 30 th July 2015 - vs1.5 Havensrock Trustee Registered Group Life Assurance - Technical Guide 1 Havensrock Technical Guide Welcome to

More information

POLICE MUTUAL ASSURANCE SOCIETY. Principles and Practices of Financial Management July 2015. PPFM v16.4

POLICE MUTUAL ASSURANCE SOCIETY. Principles and Practices of Financial Management July 2015. PPFM v16.4 PPFM v16.4 1. INTRODUCTION... 1 1.1. Purpose and History... 1 1.2. Fair and effective management... 2 1.2. Overview... 3 1.3. Principles of Financial Management... 4 1.4. Practices of Financial Management...

More information

Public reporting in a Solvency II environment

Public reporting in a Solvency II environment Public in a Survey report August 014 kpmg.co.uk 0 PUBLIC REPORTING IN A SOLVENCY ENVIRONMENT Contents Page 1 4 5 Introduction Executive Summary Public Disclosures 4 Changes to Financial Framework 11 KPMG

More information

Investment opportunities Locking the potential of future benefits

Investment opportunities Locking the potential of future benefits Investment opportunities Locking the potential of future benefits Ivo van der Veen Senior Manager Risk Services Deloitte Sjoerd Kampen Junior Manager Risk Services Deloitte 72 The last couple of years

More information

This document introduces the principles behind LDI, how LDI strategies work and how to decide on an appropriate approach for your pension scheme.

This document introduces the principles behind LDI, how LDI strategies work and how to decide on an appropriate approach for your pension scheme. for professional clients only. NOT TO BE DISTRIBUTED TO RETAIL CLIENTS. An introduction TO Liability driven INVESTMENT HELPING PENSION SCHEMES ACHIEVE THEIR ULTIMATE GOAL Every defined benefit pension

More information

Consultation on changes to the Investment Regulations following the Law Commission s report Fiduciary Duties of Investment Intermediaries

Consultation on changes to the Investment Regulations following the Law Commission s report Fiduciary Duties of Investment Intermediaries Consultation on changes to the Investment Regulations following the Law Commission s report Fiduciary Duties of Investment Intermediaries Public Consultation 26 February 2015 Page 1 of 17 Contents Chapter

More information

AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY SUPERANNUATION CIRCULAR NO III.A.6 WINDING-UP A SUPERANNUATION FUND

AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY SUPERANNUATION CIRCULAR NO III.A.6 WINDING-UP A SUPERANNUATION FUND AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY SUPERANNUATION CIRCULAR NO III.A.6 WINDING-UP A SUPERANNUATION FUND April 2002 2 DISCLAIMER AND COPYRIGHT NOTICE 1. The purpose of this Circular is to provide

More information

Guernsey International Insurance Association

Guernsey International Insurance Association Guidance on the formation and management of insurance & reinsurance special purpose vehicles ( SPV ) in Guernsey. Background Guernsey has a thriving sector for the use of licensed insurance vehicles (often

More information

European Union Green Paper on Mortgage Credit in the EU. Response from Prudential plc

European Union Green Paper on Mortgage Credit in the EU. Response from Prudential plc 1 General Comments European Union Green Paper on Mortgage Credit in the EU Response from Prudential plc 1.1 We welcome the opportunity to respond to the Commission s Green Paper on Mortgage Credit in the

More information

Accessing finance. Developing a business case for your resource efficiency projects

Accessing finance. Developing a business case for your resource efficiency projects Accessing finance Developing a business case for your resource efficiency projects Developing a business case for your resource efficiency projects 2 Contents 1 Planning a resource efficiency project?

More information

Audit Committee. Directors Report. Gary Hughes Chairman, Audit Committee. Gary Hughes Chairman, Audit Committee

Audit Committee. Directors Report. Gary Hughes Chairman, Audit Committee. Gary Hughes Chairman, Audit Committee Audit Committee Dear Shareholder, We are satisfied that the business has maintained robust risk management and internal controls, supported by strong overall governance processes, and that management have

More information

Proposed guidance for firms outsourcing to the cloud and other third-party IT services

Proposed guidance for firms outsourcing to the cloud and other third-party IT services Guidance consultation 15/6 Proposed guidance for firms outsourcing to the cloud and other third-party IT services November 2015 1. Introduction and consultation 1.1 The purpose of this draft guidance is

More information

STATEMENT FOR THE RECORD FROM THE AMERICAN COUNCIL OF LIFE INSURERS BEFORE THE 2012 ERISA ADVISORY COUNCIL

STATEMENT FOR THE RECORD FROM THE AMERICAN COUNCIL OF LIFE INSURERS BEFORE THE 2012 ERISA ADVISORY COUNCIL STATEMENT FOR THE RECORD FROM THE AMERICAN COUNCIL OF LIFE INSURERS BEFORE THE 2012 ERISA ADVISORY COUNCIL EXAMINING INCOME REPLACEMENT DURING RETIREMENT IN A DEFINED CONTRIBUTION PLAN SYSTEM WEDNESDAY

More information

Financial Reporting Brief Special Edition FRS 103 Insurance Contracts

Financial Reporting Brief Special Edition FRS 103 Insurance Contracts March 2014 Financial Reporting Brief Special Edition FRS 103 Insurance Contracts In a nutshell The Financial Reporting Council (FRC) has issued FRS 103 Insurance Contracts. The standard consolidates existing

More information

Why Managed Funds Are One of Your Best Investment Options

Why Managed Funds Are One of Your Best Investment Options Why Managed Funds Are One of Your Best Investment Options What Is A Managed Investment Fund and What are its Advantages? Managed funds are collective investments where a number of investors pool their

More information

2 September 2014. General comments

2 September 2014. General comments GFIA response to the IAIS Draft Procedures on Meeting Participation and the Development of Supervisory and Supporting Material and Draft Policy for Consultation of Stakeholders. General comments The Global

More information

RISK SHARING IN EMPLOYER RETIREMENT PROVISION IN INDIA. By Bob Charles, F.I.A., Affiliate member of ASI

RISK SHARING IN EMPLOYER RETIREMENT PROVISION IN INDIA. By Bob Charles, F.I.A., Affiliate member of ASI RISK SHARING IN EMPLOYER RETIREMENT PROVISION IN INDIA By Bob Charles, F.I.A., Affiliate member of ASI 1 SUMMARY 1.1 Most types of traditional defined benefit employer retirement benefit scheme involve

More information

Insurance (Valuation of Long Term Liabilities) Regulations 2007 Consultative Document

Insurance (Valuation of Long Term Liabilities) Regulations 2007 Consultative Document Insurance (Valuation of Long Term Liabilities) Regulations 2007 Consultative Document 1. Introduction The Insurance and Pensions Authority has released a consultative draft of the Insurance (Valuation

More information

2013 PENSIONS BILL EVIDENCE FROM THE ASSOCIATION OF CONSULTING ACTUARIES TO THE PUBLIC BILL COMMITTEE

2013 PENSIONS BILL EVIDENCE FROM THE ASSOCIATION OF CONSULTING ACTUARIES TO THE PUBLIC BILL COMMITTEE 1. Introduction 2013 PENSIONS BILL EVIDENCE FROM THE ASSOCIATION OF CONSULTING ACTUARIES TO THE PUBLIC BILL COMMITTEE 1.1 The Association of Consulting Actuaries (ACA) welcomes the key measure in the 2013

More information

Key Features of investing in an Old Mutual Wealth Collective. via an Old Mutual International - International Portfolio Bond

Key Features of investing in an Old Mutual Wealth Collective. via an Old Mutual International - International Portfolio Bond Key Features of investing in an Old Mutual Wealth Collective Investment Account* via an Old Mutual International - International Portfolio Bond For UK Customers *Provided by Old Mutual Wealth Limited The

More information