Pension funds

Solutions

Pension funds

Actuarial services

  • High-quality audit support, including support in assessing the levels of liabilities assumed by pension funds, valuation of pension reserves and savings, and issuing detailed actuarial reports
  • Conducting independent audit reviews

Audit

 
 
  • Support in developing and implementing IFRS methodologies

Methodology development

  • Actuarial support, including valuation of the fair market value of the fund
  • Assessment of pension contracts for the existence of hidden options and guarantees
  • Analysis of potential opportunities for reducing risks and costs arising from the target’s pension arrangements
  • Projection of a fund’s value based on different scenarios of the fund’s future activity and actuarial assumptions
  • Support to both buyers and sellers
  • Post M&A-related services

Mergers and acquisitions

  • Analysis of the data required to establish actuarial assumptions in existing data sources; support in statistics gathering and analysis
  • Assessment and selection of actuarial assumptions required for measuring pension obligations
  • Mortality investigation analysis of the fund’s demographic experience and forecast based on internal and external statistics
  • Benchmarking of actuarial assumptions against the market
  • Gap analysis of the fund’s liabilities related to the differences between applied actuarial assumptions and the fund’s experience

Actuarial assumptions

  • Actuarial estimation of the fund’s assets and liabilities
  • Analysis of the fund’s pension agreements for their compliance with the fund’s insurance and pension rules, including a search for hidden options and guarantees
  • Disclosure development, including sensitivity analysis
  • Preparation of an actuarial report

Actuarial assessment of the fund’s activity

  • Development and implementation of multi-state stochastic model simulating the fund’s portfolio, including transition among various states (e.g. employment, termination of employment, old-age retirement, invalidity, early retirement etc.)
  • Calibration of the model
  • Training of the fund’s staff in the use of the model

Cash-flow modelling of a fund’s assets and liabilities

 
  • Development of actuarial IT solutions, which fit in with the fund’s end-to-end infrastructure to produce management information required by decision-makers, in particular based on the SunGard modelling system Prophet

IT system development

 
  • Asset and liability modelling to provide the Fund’s management with the potential consequences of different investment strategies, including the plan's future funding status and resulting contribution requirements

Asset and liability modelling (ALM)

  • Review of existing pension schemes for their compliance with the requirements of local and international standards
  • Analysis of current pension risks and assistance in selecting the most appropriate approach to managing these risks and achieving the desired financial goals
  • Evaluation of funding policies to prevent potential problems

Strategy and operations

  • Trainings for the fund’s actuarial staff on the application of best practices in pricing and the valuation of the fund’s obligations
  • Seminars on new regulations and hot topics such as actuarial risk-management, modelling, IFRS, solvency and local standards of CIS countries
  • Secondment of members of our team to work with the fund’s personnel on current projects

Training and Seminars