UK - The Pension Protection Fund (PPF) has announced it will use the Economic Scenario Generator (ESG) financial modelling software for its pensions modelling and risk management.
Partha Dasgupta, PPF chief executive, said defined benefit pensions were undergoing a period of significant change, and it was hoped that the ESG would help the fund deal with those changes.
“Schemes’ arrangements for dealing with risk and liability are under closer scrutiny than at any time in their history,” said Dasgupta. “It is vital that the PPF stays on top of these changes, and ESG will play a core role in enabling us to do this.”
Dasgupta added the software was sophisticated enough to deal with the complexity of the current pensions regime, and flexible enough to reflect the shifting pensions landscape.
The PPF will use scenarios produced by the ESG within their Long Term Risk Model, which will be used to model both the future financial claims on the fund, and to aid the management of the fund by illustrating how its financial position might develop in future.
The ESG software was developed by financial risk consultants Barrie & Hibbert. By Damian Clarkson
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