Andy Smith
Most of the time I have little sympathy for the de-risking brigade who seem to think it their right to walk all over schemes trying to run on. Now one has got away – a big one – and there may be more schemes that will do what Stagecoach and Aberdeen have done.
But this time, I know the de-risker and I like Andrew Smith, even if he is too clever by a half! Here are his questions he thought up on his way to work (yes, really – it’s what actuaries do when travelling on a Monday morning!)
I’m glad Andy Smith has given me some questions to ask John Hamilton at our coffee morning!
Having run a shared ambition scheme for now 22 years I would like the opportunity to respond to Andy’s questions from our scheme experience. However I am not able to share all the answers in a public forum. Perhaps he might like to message me.
What I can say is that it is the employer through the Deed that sets the benefits of any DB pension scheme, employees have the freedom to opt out if they don’t like those terms. This means that inter-personal comparisons have no relevance e.g. a common benefit accrual at all ages. This also means that the pension scheme should be managed to maximise the opportunities available and not be directed by risk measures that have little relevance to the scheme. It is maximising the cash payments to the members while minimising the cash payments required from the employer that become the key targets.