2002 Pensions Convention

1
2002 Pensions Convention
abcd

• 12-14 June
• Carden Park Hotel, Chester
• (c) Jon Spain June 2002

2
GOVERNMENT ACTUARYS DEPARTMENT by GADABOUT

• Timeline
• Framework
• Purpose
• Structure
• How many? much?
• A Directorate
• B Directorate
• Summary

3
Timeline

• 1912 Sir Alfred Watson
• appointed as Chief Actuary to NHIJC
• 1917 becomes Government Actuary
• 1919 the Department was set up
• 1954 12 fully qualified actuaries elsewhere in
  CS
• 2 in National Debt Office 5 in Admiralty
  (Statistical)
• others in GRO, MoT, HO, Inland Revenue War
  Office
• no other qualified actuaries known elsewhere in
  CS
• 1989 GAD moves to full charging (almost)

4
Framework

• Chancellors Department
• accountable to Parliament (FST)
• independent advisors (specialist)
• NOT generalists
• professional accountability
• clients charged fees for services
• controlled on net running costs

5
Purpose

• source of independent actuarial advice
• value for money across public sector
• continuity of advice
• consistency of advice
• confidentiality of advice (Official Secrets
  Act)
• absence of conflicts of interest
• mission statement

6
Mission Statement

• to provide actuarial advice
• across public sector
• independent
• professional
• highest quality
• reasonable cost
• resources conflict
• but not interest

7
Structure

• Government Actuary (Chris Daykin)
• two Directorates (Directing Actuary)
• third Directorate transferred to FSA
• five Divisions (Chief Actuary)
• around 20 other actuaries (plus 2 at OPRA)
• plus around 20 trainees
• little other technical support
• could do with more people, so join us!

8
How many? much?

• current strength around 95 (after transfer to
  FSA)
• 30 actuaries (including 2 at OPRA)
• 25 trainees (various levels)
• 15 other technical
• 25 central (IT, finance, personnel,
  secretarial)
• total budget 8.0 m (2000/01 including C
  Directorate)
• professional fees 7.3 m
• Parliamentary vote 0.7 m
• staff costs 5.6 m

9
A Directorate Pensions (Grant Ballantine)

• 3 divisions with broadly similar range of tasks
• public service pension policy (not DWP advice)
• public service pension schemes
• TUPE staff transfers (public service)
• advice to Inland Revenue on pensions
• practice notes
• excessive surpluses (policy and casework)
• wider public sector
• overseas pension schemes

10
TUPE Staff Transfers (Public Service)

• compulsory transfers where pensions ARE protected
• many names for similar result
• privatisation
• contractorisation
• market testing
• Private Finance Initiative (PFI)
• Public Private Partnership (PPP)
• Machinery of Government
• broadly same effects for employees

11
Pension Scheme Services

• design of new pension arrangements
• actuarial valuations (funding requirements)
• cash flow projections (especially unfunded
  schemes)
• pension figures for accounts (SSAP24 and FRS17)
• transfer payments (individual and bulk)
• new appointments and loss of office
• scheme actuary and MFR

12
B Directorate Social Security (Andrew Young)

• stronger demarcation between 2 divisions
• B1 (David Lewis)
• social insurance
• international activities
• including insurance regulation
• B2 (George Russell)
• pensions policy (DWP)
• demography
• statistics

13
B1 Division (David Lewis)

• UK social security estimates
• finances of National Insurance Fund
• short-term cash-flow projections
• long-term cash-flow projections
• evaluation of policy options
• social security for other countries
• pension reform strategies

14
B2 Division (George Russell)

• occupational pension scheme policy (DWP)
• contracting-out terms
• occupational pension scheme surveys
• population projections life tables
• pension regulation OPRA ( 2 secondees)
• consumer credit, ERNIE, etc
• compensation by courts (other tribunals)

15
Occupational Pension Scheme Policy (DWP)

• reform of minimum funding requirement (MFR)
• pensions sharing on divorce (private and state)
• contracting out requirements
• anti-franking
• money purchase statutory illustrations (TM1)
• review of contracted-out rebates

16
Summary

• Financial Services Consultancy
• expertise
• experience
• independence
• incredibly broad range
• clients
• services
• geographical spread
• were from the civil service and were here to
  help you
• its true!
•