Moving with the times – On Demand Valuations
05 May 2017
Our 2017 Trustee Barometer research revealed that 94% of trustees don’t have access to their formal triennial valuation results within one month. And 56% of trustees told us that getting access to accurate up to date data for strategy, monitoring and decision-making will be one of their biggest challenges this year. The traditional valuation approach doesn’t meet the needs of today’s trustees. It seems archaic that trustees can’t access real time bang up to date data and instead have to wait three months, six months or even longer to receive valuation data.
With increased levels of freedom, members now have unprecedented options when it comes to their retirement decisions. This freedom means that it’s increasingly likely that members’ benefits will be settled earlier. If valuation data doesn’t reflect these settlements as they happen then cashflows and therefore funding and risk monitoring could be in danger of ‘valuation drift’. This could amount to £6m over the valuation cycle.
Having inaccurate data has major implications for funding, investment and de-risking decisions and makes cashflow planning ineffective. Can trustees make important decisions with unreliable data? Can trustees be confident that the data upon which they’re basing their risk management decisions is sound?
We don’t think so. That is why we’ve developed on demand valuations. Our approach provides updated liability, cashflow and risk information, based on accurate member data every quarter as a matter of course. We can schedule it to meet your requirements, ensuring the timing and delivery suit your needs. There will no longer be a need to wait six months for valuation results. Discussions can happen when they need to and you can make decisions confidently based on accurate, up to date and reliable data.
Being a trustee to a defined benefit (DB) pension scheme is increasingly complex and challenging. Whilst the role of trustee has evolved and adapted the tools, and the approaches to the role have remained archaic. Our new approach can help you navigate the complex and challenging DB landscape.
It will help you to make important funding or investment decisions, using accurate funding and risk data, so you can ensure a better outcome for your scheme and your members.