21st century pension scheme management looks very different to the traditional model. From a funding and investment perspective, the traditional triennial valuation cycle, based on projections of historical membership data, no longer meets the needs of DB pension schemes.
Currently, approximations made in traditional funding projections, coupled with the impact of member data changes, results in ‘valuation drift’. This means trustees cannot be confident in making important funding and investment decisions, doing so based on potentially misleading funding and risk data. This valuation drift will become even more material as “Freedom and Choice” gathers momentum.
That’s why we’ve developed a transformational approach to valuations. We’ll provide our clients with updated liability, cashflow and risk information, based on up to date member data ‘on demand’ and as a matter of course, every quarter at no extra cost. There are many benefits; schemes can confidently act on de-risking triggers, update LDI portfolios to ensure they remain fully effective, more closely monitor the attractiveness of buy-in pricing, and importantly, make investment and funding strategy decisions at any time, safe in the knowledge of the scheme’s true funding position.
Through our seamless process from on-demand valuations to using our 3DAnalytics, with precise, accurate, up to date data, schemes can make better decisions and achieve more certainty over the future. The result? More stability of cash contributions for sponsors and enhanced security of members’ benefits.
Members’ new levels of freedom over their retirement decisions make it more likely that your members’ benefits will be settled earlier. If your valuation data isn’t kept up to date to reflect these settlements as they happen, then your cashflow forecasts will be overstated.
We’ll provide updated liability, cashflow and risk information, based on up to date and accurate member data every quarter as a matter of course, or scheduled to meet your needs. No need to wait for triennial valuation results. Discussions can happen when they need to and you can make decisions confidently based on bang up to date data.
*Subject to receipt of member data of appropriate quality, provided in a consistent format.