How real is your pension deficit?

How real is my pension deficit?

How real is my pension deficit?

How real is my pension deficit?

How real is my pension deficit?

 We get a lot of questions on this issue!
Pension scheme deficits continue to make the headlines and many companies will be approaching their 2017 actuarial valuations with trepidation. However, behind the headlines it is not all doom and gloom for UK pension schemes. Asset values are up and the expected pension payments from schemes are largely unchanged.
First Actuarial Best-estimate Index (or FAB Index for short) has generated a significant amount of interest amongst the pensions industry – and has even been quoted in Parliament and the Government’s recent green paper. The FAB Index is calculated assuming the UK’s 6,000 DB pension schemes continue to pay out benefits as they fall due and allowing for our best estimate of the future investment returns they will earn on their assets. This best-estimate measure is important to consider when setting a DB pension scheme’s financial strategy. The FAB index consistently shows a surplus of more than £250bn, so many companies will be wondering how real is their pension scheme deficit and why are they being asked to contribute more money?
Our webinar will provide practical guidance on how to approach your next valuation, including:
  • assessing whether your existing funding methodology reflects your long term strategy;
  • why the “gilts plus” model for setting discount rates is now being challenged;
  • how to consider whether you have the right amount of prudence in your funding strategy; and
  • an update on non-cash funding options.
The webinar will start at 11am on Tuesday 20 June and will be presented by Peter Shellswell and Sam Mullock. It will last around 40 minutes and will be of interest to finance directors, financial controllers, trustees and anybody with defined benefit scheme responsibilities.
Book your place on our webinar please visit:

We hope that you can join us. For any questions please email

About henry tapper

Founder of the Pension PlayPen, Director of First Actuarial, partner of Stella, father of Olly . I am the Pension Plowman
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