• Risk of Ruin - modelling the risk of members not receiving full benefits in defined benefit pension schemes
    Wednesday, 16 August 2017

    The Pensions Regulator has been encouraging schemes to adopt Integrated Risk Management looking at the risks caused to a pension scheme by the strength of the supporting covenant, the funding approach and the investment strategy in a holistic fashion.  On Wednesday, 16 August we will be hosting a seminar to follow up the launch of our “Risk of Ruin” tool that measures the probability of a scheme failing to provide member benefits in full taking account of the supporting covenant, the funding approach and the investment strategy. The “Risk of Ruin” provides a single measure by which trustees and sponsors can understand the integration of covenant, investment and funding risks relevant to their pension schemes.   

    At the seminar we will explain the “Risk of Ruin” concept and walk through some of the interesting (and sometimes counter-intuitive) findings from our research.
     
    This will include:
    ·         Why insolvency of the sponsor is the major issue for scheme members;
    ·         How affordability constraints can have a significant impact on the “Risk of Ruin”;
    ·         Why increasing prudence is not always the best answer to a weakening covenant;
    ·         The effectiveness of lump sum contributions;
    ·         The powerful impact of contingent assets; and
    ·         How liability management exercises affect the “Risk of Ruin”.
     
    The seminar will be hosted by the authors of the Risk of Ruin research report. 
     
    Address: The Nelson Room, Corinthia Hotel London, Whitehall Place, London, SW1A 2BD
     
    Timings:
    ·         9.00am - registration and breakfast
    ·         9.30am - seminar begins
    ·         11.00am - close with coffee 
     
    Attendance at the seminar is complimentary. If you would like to attend or discuss the Risk of Ruin in more detail, please either email Richard Jones or call him on 020 3327 5290.