Consultancy Services

PCS Alert - November 2010
PCS Alert - January 2010
Contact
Rob Dales FIA Rob Dales FIA /uploads/contacts/contact_20.jpg 3rd Floor, Bond House The Bourse Boar Lane Leeds LS1 5EN 0113 203 5883 0779 909 4392 0113 203 5862 rob_dales@jltpcs.com Rob joined PCS in 2007 having previously been a Director at KPMG for 10 years. Rob has 20 years experience of advising Trustees and companies on all aspects of pension matters but in the last 10 years has specialised in providing advice to the company. Rob’s particular expertise is in designing and implementing liability management solutions for pension schemes. He was one of the first actuaries to implement an enhanced transfer value exercise back in 2002. Rob has extensive experience in assisting companies with the more complex aspects of pension arrangements including Scheme Funding, dealing with the Pensions Regulator and the pension implications of corporate transactions and insolvencies. Rob has written several articles which have been published in the Financial Times, Pensions World, Yorkshire Business Insider and Professional Pensions. Rob is also co-author of "An Introduction to Pensions" published by Gee. After graduating with a first class honours degree in mathematics in 1987, Rob qualified as a Fellow of the Institute of Actuaries in 1992.

Funding and Funding Alternatives

With most DB schemes we see, the immediate need is to manage the short term issues with the trustees, the Pensions Regulator and scheme members. This should, and will, involve more than a simple recommendation for a series of cash payments. Always remember, the company own the deficit, the members own the surplus.

At PCS, when considering funding level requirements, we take account of factors such as:

• The cash flow demands for the business;
• Balancing pension debt against bank debt;
• Analysts views;
• Tax relief implications;
• Is it a private or public organisation;
• Negotiations with members to limit accrued liabilities in excess of PPF support;
• Immunisation of liabilities: alternative annuities/corporate restructure.

A key element of the PCS approach to building the pension funding strategy into the overall corporate strategic planning process is not to waiti for the results of the scheme valuation to drive the next phase of scheme funding.