The following are active research working parties overseen by the IFoA’s the Pensions Research subcommittee.
All members are encouraged to volunteer for a research working party. If you have your own ideas for member-led research you would like to pursue, please contact our Practice Communities Team below or refer to our Guidance for Research Working Parties (562 KB PDF).
Members interested in volunteering for a research working party should check our volunteer vacancies.
This working party follows on from a recommendation made in the report of the target end states for defined benefit pension schemes working party (1.15 MB PDF). See paragraph 1.13.
The concept of a dynamic discount rate is covered briefly in the above paper (see paragraphs 4.78 to 4.87) but, in essence, it’s an approach whereby the discount rate used for funding purposes moves in sympathy with the low-risk asset portfolio that is backing the liabilities. It works well in cases where the asset portfolio consists of investments with a high degree of contractual cash flows that are similar in nature and profile to the expected benefit outgo. There are, of course, other factors to consider when setting the discount rate such as risks not covered by the cashflows but the above concept is still a useful starting point.
Chair: Gareth Connolly
Established: 2021
Pensions – The Future of Pensions Dashboards: An Actuarial Perspective is focussed on the pensions dashboard and member communications.
What can actuaries contribute to the challenge of providing a pensions dashboard to members, and enabling them to understand the risks and opportunities their current saving affords them?
Terms of reference (37 KB Word doc)
Chair: Andrew Lowe
Established: 2024
The decline of defined benefit (DB) pension schemes shows no signs of slowing. Yet there is a growing school of thought that defined contribution (DC) schemes are not well suited to all groups of UK workers. The Freedom and Choice agenda means DC members are no longer required to use their pension pot to provide for their retirement. However, it is impossible for individuals to know their own longevity and make appropriate investment decisions to meet their future income needs, which means drawdown leaves individuals open to the risk of running out of money in retirement. Insured annuity purchase is a relatively expensive way to purchase an income in retirement and is becoming less popular.
Collective Defined Contribution (CDC) schemes are designed to provide a viable fixed cost alternative to DC, which provide benefits in the form of an annual retirement income. The rate of increases on the CDC income is variable. The risk is collectively shared within the membership and higher benefit outcomes are expected as a result. CDC has the potential to improve benefit outcomes for millions of workers in the UK.
There has been much recent progress towards the introduction of CDC in the UK, and the Pension Schemes Bill 2019/20 set out a proposed legislative framework for the introduction of CDC schemes (to be referred to in legislation as “Collective Money Purchase” schemes).
The party works on behalf of the IFoA and with other Boards / Committees within IFoA as appropriate to develop thinking in CDC and other collective risk sharing schemes, engage with external stakeholders such as DWP and the Regulator on CDC, and comment externally on CDC developments.
Chair: Simon Eagle
Established: 2018
The Personal Financial Planning Working Party looks at how actuaries’ skills can be used to improve personal financial planning among individuals.
Our key objectives include:
Chair: Andrew Kemp
Established: 2020
For more information about any of our practice areas, please email the Communities Engagement Team