UK - Deloitte & Touche has created a "crash proof" asset liability model for schemes, which it says can help save company's credit ratings.
Deloitte & Touche says its model differs from others in that rather than looking at averages, it takes extreme positions to determine how much risk the scheme – and its sponsor – is carrying.
Head of investment services Tony Osborn-Barker says companies will be able to manage their scheme funding according to these extremes, cushioning them against any unforeseen catastrophes or market falls.
He explained: “If you think of an actuarial valuation as some sort of average, most scheme models look at medians and standard deviation.
“This is charging down the other end and saying ‘What’s the worst case scenario?’.
“This model highlights the true cost of the scheme and how much risk sponsors are taking on board.”
Jonathan Stapleton asks whether newly-accredited professional trustees should be a statutory fixture on pension scheme boards.
Savers are being warned by the Insolvency Service to guard their pension pots from investment scammers and negligent trustees as it winds up 24 companies.
Respondents say they should only be required in certain situations as the system is not broken.