On the (funding) level

(Apr 18, 2017)

When I read Allan Martin's earlier blog on how pension-scheme reserves routinely fail to include expenses, I was so surprised I had to ask him if it was really true.  As a former life-insurance actuary, any reserve which didn't include an allowance for expenses simply wasn't a complete assessment of the liability in my view.  My amazement was reawakened recently when I received a statement about my preserved pension from a former employer.  An excerpt from the statement is shown below:

Table 1. Excerpt from summary funding statement.

  Actuarial valuation
as at
31 December 2013
Assets 2,904m
Estimated amount required
to provide benefits
Surplus/Deficit 330m
Funding level 113%


On the face of it,

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Tags: pension-scheme funding, expenses, market consistency

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