Pensions Education for the Actuaries of the Future

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Pensions Education for the Actuaries of the
Future

• Pensions Convention 2002, Chester
• Jeremy Goford

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Pensions Education for the Actuaries of the Future

• Core Technical
• Core Applications
• Specialist

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Core Technical - Syllabus

• Probability and Mathematical Statistics
• Financial Mathematics
• Modelling
• Actuarial Mathematics
• Statistical methods
• Economics
• Financial Accounting
• Investment Mathematics
• All except Actuarial mathematics QRA

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Core Applications - the Story and the Concepts

• Broad education in Actuarial Applications
• Taught and assessed by real practical examples
  and courses

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Core Applications - Structure

• The process of a professional actuarial job in a
  business context
• Spread features of
• Professionalism
• Assets
• Risk
• Project Management

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Core Applications - Syllabus

• The Process of a Professional Job
• Think through to the result of the job
• Place in the business context
• Monitor implementation and learn
• Stakeholders
• Competencies
• Types of advice
• Advice v Decisions

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Core Applications - Syllabus

• Environment
• Stakeholder needs
• Pooling
• Marketing, distribution and access
• External forces
• Legislation, regulation, accounting, governance
• Tax and State benefits
• Social, environmental and international issues
• Assets - descriptive, risk and valuation
• Capital
• Role of the Actuary

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Core Applications - Syllabus

• Specifying the problem
• Employer / Client interaction
• Awareness of Risk
• Nature of Value
• Project Management
• Professional standards
• Whats the problem / questions?

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Core Applications - Syllabus

• Input validation
• Producing the solution
• Methodology and Techniques
• Models
• Assumptions
• Benefit and Design
• Expenses
• Developing the Cost
• Market Rates
• Funding

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Core Applications - Syllabus

• Producing the Solution - contd
• Solvency requirements, provisioning, capital
• Liability valuation techniques
• Assets
• ALM
• Projections
• Risk management
• Transfer / reassurance
• Underwriting
• Management of net retention
• Public Interest
• Communication

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Core Applications - Syllabus

• Living with the Solution
• Maintaining profitability
• Analysis of movement using expected experience
• Reporting actual results
• Risk management
• Asset management
• Capital management and allocation
• Analysis of surplus, discretion, distribution
• Corporate finance
• Options and guarantees

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Core Applications - Syllabus

• Monitoring
• Presentation
• Learning
• The Actuarial Control Cycle
• Update assumptions and plans
• Deterministic
• Stochastic

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Specialist Subjects

• Finance and Investment
• Life assurance
• General insurance
• Pensions and other benefits
• Health and Care

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Specialist Subjects

• 2 specialist technical papers
• 1 specialist application assessment in 2 parts
• 1 technical paper may be in the same or another
  speciality
• Dissertation
• Record of experience

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Pensions and other benefits Specialism

• Interests of stakeholders
• Interaction of state, sponsor and individual
• Corporate interaction with employees
• Pensions as part of total remuneration
• Interaction with other benefits
• Healthcare / medical
• Role of pensions in meeting corporate / HR
  objectives
• Contracting out

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Pensions and other benefits Specialism

• Pricing of options
• Transfer values
• Early retirement
• Commutation
• Flexibility / practicality (small schemes)
• Bulk Transfers
• Risk
• for Trustees
• for Sponsors
• for Members

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Pensions and other benefits Specialism

• Professional Guidance
• Corporate Governance
• ALM
• Use of Insurance / Reinsurance
• Administration
• Managing costs
• Taxation
• Options and Guarantees
• International Practice

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Some Issues

• General actuarial principles before specialism
  and country specific knowledge
• Financial economics
• International convergence
• Transition arrangements

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The End
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Core Applications - Syllabus

• A