There are a lot of people making noise about releasing pension scheme surpluses in funding. Here’s the actuaries saying something that pleases everybody.
Actuaries like to think of themselves as an extension of the government and of course they have a Government Actuaries Department of the Treasury. It is encouraging that this IFoA are not throwing their arms about like a Nottingham economist I see on the TV.
But it is not enough to hand the issue to the actuaries, the trustees of the big pension schemes need to make decisions and they should not rely on the rules of pensions that have grown over the past 25-30 years.
Here is a non actuary trying to get some support on Linked in
But he’s just promoting the views of LCP who are of course actuaries (or former Government ministers!).
The debate is again very closed and many of the names that appearing are from a small group – some of whom debate on this blog.
Of course I am not an actuary nor wish to be in Government (unless asked for my views). But i think that we are at a point where our responsibility is to counter the work of others.
By “others” I mean the ABI for whom the thought of pension schemes becoming theirs , is at the heart of their business plans. The ABI will not be liking with the thought of pension schemes carrying on without buying out or in – with annuities.
It is a standard feature of a pension minister’s timetable to meet with insurers who are expert in getting time in the minister’s diary. We can’t turn on to Linked in without seeing pictures of insurance executives getting close to pension ministers present and past to demonstrate they are what matter. Many of these executives are actuaries and it must be hot in Staples Inn right now as the insurance and pension actuaries debate what the “balance” mentioned above – looks.
The insurers will try to grab the word “guaranteed” and apply it to annuities while the pension actuaries will have a different argument. Because actuaries aren’t naturally imaginative, they find speculative investments outside their mindset so I think they will be feeling a little discombobulated by the prospect of pension schemes driving forward British growth. However many will get it.
The PLSA , a third “voice” in this are nowadays funded by the support of the insurers (especially those selling Bulk Purchase Annuities). It will be interesting to see how the investment conference, now only 6 weeks away, will see actuaries parading their views. It will be easier to predict the ABI, it will be awkward for the PLSA.
Emma Douglas is an MD at insurer Aviva and Chair or PLSA. Sophie is an actuary (qualified Aon) with a consultancy job at XPS
“Awkward” is a word you’ll hear a lot in board rooms in the next few months.