The Role of a Scheme Actuary Duties of

The Role of a Scheme Actuary

Duties of scheme actuaries • The scheme actuary is responsible for the following: • Actuarial review of the scheme on a three year cycle • Meeting with the trustees to decide on the way forward for the scheme • Make aware to trustees how external factors will affect scheme.

• The scheme actuary will advise the trustees on the best scheme for them. • Whether this is funded or unfunded or DC or DB and the risks associated with each of these options. • They may have to build a scheme that is tailored to the requirements of the employer or maintain an existing scheme. This is often the case when companies want to reward high flyers and executives. • They calculate how much the employer and employee will have to contribute to the scheme.

• The scheme actuary will advise on an appropriate investment benchmark or an investment policy appropriate to the liabilities of the pension scheme. • They will advise employers in mergers and acquisition negotiations as they will affect pension schemes. • They will carry out and asset/liability studies for the scheme and analyse the consequent investment requirements and options.

What the future holds • As of 2004 there where just over 900 practising scheme actuaries in the UK and this number is unlikely to increase significantly in the future. • There is tremendous job security for an actuary as they are very much in demand. • As time goes on the government may look to scheme actuaries in order to help out by providing better returns and thus reducing the governments need to top up the individuals pension.

• It is usual to have two or more actuaries per scheme as it would result in a conflict of interest. Thank very much for your time. Any Questions ? Mr Jack White and Mr Ka Ming Kwok