William McGrath has done a great deal to promote TAS300 to help trustees and employers get it right at the point of deciding how a DB scheme proceeds

Regulatory coordination to follow to boost “informed decision making”

The case for maths based run-on v bulk transfer comparisons ahead of strategies being set for DB pension schemes was debated in the House of Lords for the third time on Monday.  Debate extracts attached.

The Baroness Altmann Amendments – strongly backed by knowledgeable members – have been effective.  They can be addressed through coordination between the numerous relevant Regulators and by trustees ensuring they make the fully informed decisions expected of them.

Baroness Sherlock, Minister of State responding for the Government, said during the House of Lords debate:

“The noble Baroness, Lady Altmann, is right to home in on the underpinning goal of these amendments. We want to make sure that trustees continue to take advice on the potential options for their schemes and keep the scheme’s strategy under regular review.

To ensure this, we will continue to work with TPR as it reviews and updates its guidance. We will also engage bodies such as the FCA and, where appropriate, the PRA and the FRC, to ensure alignment across all guidance relating to consideration of alternative options.”

Expect TPR to step up.  TAS300V2.1 (from Financial Reporting Council, the forgotten regulator of actuarial work) has to date been ignored by TPR in its annual Funding Statements, the Funding Code and in Funding and Investment Strategy regulations.  Informed decisions require a realistic, calculated assessment of what is at risk for members and what the inflation protection and value share upsides can be.

Pre-1997 service being covered by PPF and one-off payments being Authorised change the calculations.

Actuarial work has long been subject to very little scrutiny.  Some regulatory coordination through a revised Joint Forum on Actuarial Regulation could go a long way.

C-Suite with its partners have modelling tools and analyses to support informed decision making.

Terrific work by Baroness Altmann.

Here is the debate