Pension Investment and Liability
Management
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| USA plans |
TILLC assists clients in the following activities:
- Asset and liability management of pension management
- Investment guidelines for investment classes
- Benchmarking investment and discount rate assumptions
for both actuarial and accounting assumptions.
- Risk return analysis and review of advisor recommendations.
TILLC has assisted clients in their selection of
investment advisors and managers
- Annuity purchase proposals - especially in conjunction
with acquisitions that place pension PBO liabilities
on the balance sheet
- Defined Benefit plan freeze and implementation
of Defined Contribution plan that provide plan sponsors
with certainty of contribution.
- Due diligence support for client acquisitions.
Review acquired defined benefit plan documents, trusts,
investment guidelines, funding
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| UK Pension plans & Trustee
evaluation |
| TILLC has assisted clients navigate the changes required
by the Pension Act 2004 (PA04) reforms. Plan Sponsors
with tri-annual actuarial valuations after 23 September
2005 need to implement the following changes: |
- Trustee governance,
- Funding,
- Investments guideline establishment, and selection
of investment managers.
- PA04 changed the responsibilities of pension trusts and
trustees – many of whom are unprepared
to exercise the increased fiduciary responsibilities
mandated by the legislation.
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UK plan sponsors previously relied on one set of
advisors. Plan sponsors now need a separate (duplicate)
slate of lawyers and actuaries for advise and interpretation
of the new legislation and PA04 regulation interpretation(s).
Since there are no ‘safe harbor’ rulings – as
yet - there is the opportunity for Legal and Actuarial
advisors to provide the most conservative direction
on the impact of the new pension legislation. Conservatism
in assumptions and funding leads to higher expense
(and cash contributions) absent useful benchmarking
of plans.
UK pension schemes have traditionally relied
on FRS 17 as an appropriate funding target. An
additional statutory scheme was also in force.
The new UK regulator – the Pension Protection
Fund (PPF) is still determining how it intends
to interpret individual scheme funding targets.
The PPF has indicated that it may use a ‘dual’ approach – meaning
of which is unclear. What is clear is that the
new legislation and lack of clear regulatory
guidelines have placed plan sponsors in the middle.
TILLC is active in implementing the requirements
of PA04. TILLC can help clients with UK defined
benefit plans to understand the significant UK
legislative changes and help make sound benchmarked
funding and contribution decisions. |
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| International Pension plan review |
| May TILLC client have many small international defined
benefit plans. TILLC has developed a review process that
allows all corporate Treasury, HR and Accounting to asses
these plans on a common platform. The reviews helped
eliminate frequent year end out of compliance ‘fire
drills’ for small defined benefit plans. |
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