UK JEWISH BURIAL ARRANGEMENTS Nigel Sloam Nigel Sloam

UK JEWISH BURIAL ARRANGEMENTS Nigel Sloam, Nigel Sloam & Co. 2 nd March 2020

Outline • • • Basics Membership Financial Structure Regulatory Environment Professional Aspects 2

Basics • Many different UK Jewish burial (funeral expenses) societies - • Run for community (or affiliated communities) - • • to ensure religious burial on standard basis varying religious requirements non-commercial, not-for-profit Most own and maintain and develop burial grounds - • nationally and provincially representing different groups/denominations/localities providing benefits for well over 100, 000 members or families some have been in existence for 200 years their existence was generally unknown to the wider profession until a few years ago. some lease from other groups or local authorities Orthodox Jews are only buried, Reform Jews either buried or cremated Some organisations provide free charitable burials 3

Membership • Funeral scheme subscription normally requires membership - • Funeral scheme membership lapses with main membership - • relatively few “surrender values” no transfer system in play but sometimes can pay a single premium Membership fees not normally age related - • of community rarely available on stand-alone basis new joiner fee between ages 35 -75 fairly common premiums payable throughout life Eligible non-members can pay for funerals when needed - rate often set to create surplus to subsidise scheme expenses 4

Financial Structure • Finances often integrated with community funds - • Often benefit from communal charitable status - • part of or in addition to main membership Some schemes offer advance payment option - • rely on tax exemptions Fees usually paid annually - • not always set up as separate trusts in part or in full Additional income from tombstone levies 5

Regulatory Environment • Guidance geared towards commercial plans – these schemes were ignored! - Non-mandatory guidance (“Guide for Actuaries on UK Trust-Based Pre-Paid Funeral Plans”) Actuarial Profession Standard Z 1 (“Duties and responsibilities for actuaries working for UK Trust-based Pre-Paid Funeral Plans”) Technical Actuarial Standard 400: Funeral plan trusts (consultation opened 19 February 2020 on changes) all framed without apparent knowledge of existence or operation of these faith based plans • Mirrored in other faith communities who are now taking first steps to incept similar schemes • “Life Assurance” style benefits provided - • No consensus that faith based schemes might fall subject to regulation - • historically no explicit requirement for actuarial advice but leading counsel thought that these were subject to former insurance legislation the parties involved long under impression – or hope - that exempt from regulation by virtue of being not-for-profit Recent discussions with FCA indicate that this could be wrong 6

Professional Aspects • FCA/Treasury have suggested that these schemes may need to be regulated - • Actuaries are invited to advise intermittently in most societies - • by FCA and/or PRA or otherwise need to meet specific criteria for exemption not necessarily at regular intervals Some actuarial involvement has been on pro-bono basis - by community members under some communal pressure who may not have recognised professional responsibilities and may be inexperienced • Data generally poor • Some communities are inherently difficult to regulate and are immune to advice! 7

Disclaimer The views expressed in this presentation are those of the speaker, Nigel Sloam and not necessarily of the Staple Inn Actuarial Society