Tag Archives: FABI

Shouldn’t Pension Schemes CREATE jobs? #CIPD

News that ballooning pension deficits are hitting profits and leading to hiring freezes is both unwelcome and unacceptable. Pension schemes should be benefiting UK businesses, enabling them to retire those becoming less productive and hire the best new talent. But … Continue reading

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Strange ideas – Con Keating debunks pension’s received wisdom

A number of extremely strange beliefs have emerged in the course of correspondence arising from earlier articles that introduced methods for the evaluation of pension liabilities which do not invoke any external factor. Take the idea of using market prices … Continue reading

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The risk in “de risking”

Defined benefit pensions are delicate mechanisms designed for the purpose of providing pensions for generations of employees. Decisions taken in the last twenty years first to close DB schemes to new entrants, then to future accrual to current members and … Continue reading

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Two months in and FABI makes its point

While other indices see wild volatility in the deficit positions of the PPF7800, the FABI index is already showing the material advantage of a smoothed approach to valuations. To put it in behavioural terms, you don’t have to popping champagne … Continue reading

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The value of your pension and the value of your house (Professor Mike Otsuka)

Professor  Mike Otsuka, teaches at the  LSE , he’s written about First Actuarial’s approach to valuing pensions in this blog, the original of which you can find here. People understand houses and know that it’s only when you come to … Continue reading

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“It’s not what you’re saying, it’s what we’re hearing”. DB needs clearer messaging.

I hate falling out with old friends so I wasn’t happy when Raj Mody phoned me and told me that I’d pissed him off. Well he put it more mildly than that but when an actuary says he’s disappointed, you … Continue reading

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How mean is my valley? Why have we given up on pension prosperity?

  Britain is one of the great economic powerhouses of the world. We are a strong nation that should be most confident in ourselves and our capacity to manage our own future. In the past few days we have seen … Continue reading

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Pensions for real – Even DC pensions!

All week we have been discussing how best to manage and measure Britain’s “pension deficits”. The FAB index which First Actuarial introduced last weekend has made quite an impression. My friend Rob Hammond will be on MoneyBox tomorrow lunchtime ; … Continue reading

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“Why do we see pensions like that?” Assumptions behind the FAB Index

This week we published the FAB index (FABI) which shows the way we see the state of this nation’s defined benefit pensions. “We” means First Actuarial, I work for First Actuarial. We want to paint a picture of the pensions … Continue reading

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