UK actuaries pay €2.2m to plug own pension deficit
UK – The Faculty and Institute of Actuaries made an extra £1.5m (€2.17m) in additional contributions in the past year in a bid to erase a £3.6m deficit at their own pension fund, accounts show.
It has also emerged that the asset allocation at the Faculty and Institute of Actuaries Staff Pension Fund has shifted towards bonds and away from equities over the year.
“During the financial year, additional contributions of £1.5m were made to the Pension Scheme,” the accounts stated. The bodies’ combined annual report is due to be presented this week.
The news comes as responsibility for setting actuarial standards has shifted from the profession itself to the new Board for Actuarial Standards.
The two bodies, which represent actuaries in England and Scotland, said that the accumulated deficit as of February 2004 was spread over 10 years and that a new contribution rate, 29.2%, plus annual payments of £400,000 was put in place.
The fund is shared between them – and there appears to be confusion about who is responsible for the pension deficit.
Both bodies’ sets of accounts reveal that neither has a provision relating its share of the total deficit because it is a multi-employer scheme and they are “unable to identify” their share of the underlying assets and liabilities.
Although scheme assets have grown to £16.6m as at the end of February, from £12.9m a year before, liabilities have also grown. They’re up to £20.3m from £17.4m.
The bond portfolio has risen from £6.4m to £10.7m while equities have slipped to £5.2m from £6.5m. The pension cost for the year more than double to £2.2m.
Elsewhere, Aegon's pensions development director Stewart Ritchie has been appointed as president of the Faculty of Actuaries.
And former Institute of Actuaries president Peter Clark has died, the institute web site says. “It is with great sadness that we announce the death of Peter Clark, who died suddenly and unexpectedly at home on Sunday 11 June 2006. Peter was President of the Institute of Actuaries from 2000-2002.”