Integrated risk management for defined benefit pension schemes: a practical guide

The Working Party has developed some practical hints and tips for those developing integrated risk management (IRM) plans for UK defined benefit pension schemes in the context of the requirements of the Pensions Regulator. Four case studies are presented to illustrate its conclusions, which are enca...

Full description

Saved in:
Bibliographic Details
Published in:British Actuarial Journal 2018, Vol.23, p.1-60, Article e1
Main Authors: Hitchcox, A. N., Patel, C., Ramsey, C. J., Studd, E. L., Ma, L. T., Elliott, M. B., Keogh, T. W.
Format: Article
Language:English
Subjects:
Actuarial science
Advisors
Collaboration
Cooperation
Decision making
Defined benefit plans
Employers
Funding
Investment policy
Management decisions
Objectives
Pension plans
Public domain
Risk management
Sessional meetings: papers and abstracts of discussions
Trustees
Citations: Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
cited_by cdi_FETCH-LOGICAL-c2975-f5af595f788c5a3fae911e0677feda94510a567d56cb339a65ebba4cccd748733
cites
container_end_page 60
container_issue
container_start_page 1
container_title British Actuarial Journal
container_volume 23
creator Hitchcox, A. N.
Patel, C.
Ramsey, C. J.
Studd, E. L.
Ma, L. T.
Elliott, M. B.
Keogh, T. W.
description The Working Party has developed some practical hints and tips for those developing integrated risk management (IRM) plans for UK defined benefit pension schemes in the context of the requirements of the Pensions Regulator. Four case studies are presented to illustrate its conclusions, which are encapsulated in the ten commandments for effective IRM. IRM is the consideration of investment, funding and covenant issues, and how these interact. Its purpose should be to aid decision making and so should have a clear outcome in mind. It should be a continuous process and should form part of everyday trustee governance – it is not simply a one-off exercise. Whilst most Trustees and advisors consider funding issues when setting their investment strategy and vice versa, fewer fully integrate covenant into their decision-making process. However, covenant underpins all risk taken in a pension scheme and so needs to form a regular part of trustee discussions and analysis by advisors.
doi_str_mv 10.1017/S1357321717000095
format article
fullrecord <record><control><sourceid>jstor_proqu</sourceid><recordid>TN_cdi_proquest_journals_1985641006</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><cupid>10_1017_S1357321717000095</cupid><jstor_id>26891351</jstor_id><sourcerecordid>26891351</sourcerecordid><originalsourceid>FETCH-LOGICAL-c2975-f5af595f788c5a3fae911e0677feda94510a567d56cb339a65ebba4cccd748733</originalsourceid><addsrcrecordid>eNp1kE1LxDAQhoMouK7-AA9CwHM1aZqk8SaLHwsLIuq5TNNJ7bqb1qR78N-bZRcRxLnMwPN-wBByztkVZ1xfv3Ahtci55pqlMfKATHJWFBkrpDokky3OtvyYnMS4ZMmTm3JCnud-xDbAiA0NXfyga_DQ4hr9SF0faIOu84nV6NM10gF97HpPo31PonhDgQ4B7NhZWNF20zV4So4crCKe7feUvN3fvc4es8XTw3x2u8hsbrTMnAQnjXS6LK0E4QAN58iU1g4bMIXkDKTSjVS2FsKAkljXUFhrG12UWogpudzlDqH_3GAcq2W_CT5VVtyUUhWcMZVUfKeyoY8xoKuG0K0hfFWcVdvPVX8-lzwXO88yjn34MeSqNEnLExf7TFjXoWta_FX9b-o3h2x5eA</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>1985641006</pqid></control><display><type>article</type><title>Integrated risk management for defined benefit pension schemes: a practical guide</title><source>Business Source Ultimate【Trial: -2024/12/31】【Remote access available】</source><source>Cambridge Journals Online</source><source>ABI/INFORM global</source><source>JSTOR Archival Journals and Primary Sources Collection</source><creator>Hitchcox, A. N. ; Patel, C. ; Ramsey, C. J. ; Studd, E. L. ; Ma, L. T. ; Elliott, M. B. ; Keogh, T. W.</creator><creatorcontrib>Hitchcox, A. N. ; Patel, C. ; Ramsey, C. J. ; Studd, E. L. ; Ma, L. T. ; Elliott, M. B. ; Keogh, T. W.</creatorcontrib><description>The Working Party has developed some practical hints and tips for those developing integrated risk management (IRM) plans for UK defined benefit pension schemes in the context of the requirements of the Pensions Regulator. Four case studies are presented to illustrate its conclusions, which are encapsulated in the ten commandments for effective IRM. IRM is the consideration of investment, funding and covenant issues, and how these interact. Its purpose should be to aid decision making and so should have a clear outcome in mind. It should be a continuous process and should form part of everyday trustee governance – it is not simply a one-off exercise. Whilst most Trustees and advisors consider funding issues when setting their investment strategy and vice versa, fewer fully integrate covenant into their decision-making process. However, covenant underpins all risk taken in a pension scheme and so needs to form a regular part of trustee discussions and analysis by advisors.</description><identifier>ISSN: 1357-3217</identifier><identifier>EISSN: 2044-0456</identifier><identifier>EISSN: 1748-5002</identifier><identifier>DOI: 10.1017/S1357321717000095</identifier><language>eng</language><publisher>Cambridge, UK: Cambridge University Press</publisher><subject>Actuarial science ; Advisors ; Collaboration ; Cooperation ; Decision making ; Defined benefit plans ; Employers ; Funding ; Investment policy ; Management decisions ; Objectives ; Pension plans ; Public domain ; Risk management ; Sessional meetings: papers and abstracts of discussions ; Trustees</subject><ispartof>British Actuarial Journal, 2018, Vol.23, p.1-60, Article e1</ispartof><rights>Institute and Faculty of Actuaries 2017</rights><rights>Institute and Faculty of Actuaries 2017 This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (the “License”) (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited. Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.</rights><lds50>peer_reviewed</lds50><oa>free_for_read</oa><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c2975-f5af595f788c5a3fae911e0677feda94510a567d56cb339a65ebba4cccd748733</citedby></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://www.proquest.com/docview/1985641006/fulltextPDF?pq-origsite=primo$$EPDF$$P50$$Gproquest$$H</linktopdf><linktohtml>$$Uhttps://www.proquest.com/docview/1985641006?pq-origsite=primo$$EHTML$$P50$$Gproquest$$H</linktohtml><link.rule.ids>314,780,784,4024,11688,27923,27924,27925,36060,44363,58238,58471,72960,74895</link.rule.ids></links><search><creatorcontrib>Hitchcox, A. N.</creatorcontrib><creatorcontrib>Patel, C.</creatorcontrib><creatorcontrib>Ramsey, C. J.</creatorcontrib><creatorcontrib>Studd, E. L.</creatorcontrib><creatorcontrib>Ma, L. T.</creatorcontrib><creatorcontrib>Elliott, M. B.</creatorcontrib><creatorcontrib>Keogh, T. W.</creatorcontrib><title>Integrated risk management for defined benefit pension schemes: a practical guide</title><title>British Actuarial Journal</title><addtitle>Br. Actuar. J</addtitle><description>The Working Party has developed some practical hints and tips for those developing integrated risk management (IRM) plans for UK defined benefit pension schemes in the context of the requirements of the Pensions Regulator. Four case studies are presented to illustrate its conclusions, which are encapsulated in the ten commandments for effective IRM. IRM is the consideration of investment, funding and covenant issues, and how these interact. Its purpose should be to aid decision making and so should have a clear outcome in mind. It should be a continuous process and should form part of everyday trustee governance – it is not simply a one-off exercise. Whilst most Trustees and advisors consider funding issues when setting their investment strategy and vice versa, fewer fully integrate covenant into their decision-making process. However, covenant underpins all risk taken in a pension scheme and so needs to form a regular part of trustee discussions and analysis by advisors.</description><subject>Actuarial science</subject><subject>Advisors</subject><subject>Collaboration</subject><subject>Cooperation</subject><subject>Decision making</subject><subject>Defined benefit plans</subject><subject>Employers</subject><subject>Funding</subject><subject>Investment policy</subject><subject>Management decisions</subject><subject>Objectives</subject><subject>Pension plans</subject><subject>Public domain</subject><subject>Risk management</subject><subject>Sessional meetings: papers and abstracts of discussions</subject><subject>Trustees</subject><issn>1357-3217</issn><issn>2044-0456</issn><issn>1748-5002</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2018</creationdate><recordtype>article</recordtype><sourceid>M0C</sourceid><recordid>eNp1kE1LxDAQhoMouK7-AA9CwHM1aZqk8SaLHwsLIuq5TNNJ7bqb1qR78N-bZRcRxLnMwPN-wBByztkVZ1xfv3Ahtci55pqlMfKATHJWFBkrpDokky3OtvyYnMS4ZMmTm3JCnud-xDbAiA0NXfyga_DQ4hr9SF0faIOu84nV6NM10gF97HpPo31PonhDgQ4B7NhZWNF20zV4So4crCKe7feUvN3fvc4es8XTw3x2u8hsbrTMnAQnjXS6LK0E4QAN58iU1g4bMIXkDKTSjVS2FsKAkljXUFhrG12UWogpudzlDqH_3GAcq2W_CT5VVtyUUhWcMZVUfKeyoY8xoKuG0K0hfFWcVdvPVX8-lzwXO88yjn34MeSqNEnLExf7TFjXoWta_FX9b-o3h2x5eA</recordid><startdate>2018</startdate><enddate>2018</enddate><creator>Hitchcox, A. N.</creator><creator>Patel, C.</creator><creator>Ramsey, C. J.</creator><creator>Studd, E. L.</creator><creator>Ma, L. T.</creator><creator>Elliott, M. B.</creator><creator>Keogh, T. W.</creator><general>Cambridge University Press</general><scope>IKXGN</scope><scope>AAYXX</scope><scope>CITATION</scope><scope>0U~</scope><scope>1-H</scope><scope>3V.</scope><scope>7WY</scope><scope>7WZ</scope><scope>7X1</scope><scope>7XB</scope><scope>87Z</scope><scope>8A9</scope><scope>8FK</scope><scope>8FL</scope><scope>ABUWG</scope><scope>AFKRA</scope><scope>ANIOZ</scope><scope>BENPR</scope><scope>BEZIV</scope><scope>CCPQU</scope><scope>DWQXO</scope><scope>FRAZJ</scope><scope>FRNLG</scope><scope>F~G</scope><scope>K60</scope><scope>K6~</scope><scope>L.-</scope><scope>L.0</scope><scope>M0C</scope><scope>PQBIZ</scope><scope>PQBZA</scope><scope>PQEST</scope><scope>PQQKQ</scope><scope>PQUKI</scope><scope>PYYUZ</scope><scope>Q9U</scope></search><sort><creationdate>2018</creationdate><title>Integrated risk management for defined benefit pension schemes: a practical guide</title><author>Hitchcox, A. N. ; Patel, C. ; Ramsey, C. J. ; Studd, E. L. ; Ma, L. T. ; Elliott, M. B. ; Keogh, T. W.</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c2975-f5af595f788c5a3fae911e0677feda94510a567d56cb339a65ebba4cccd748733</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2018</creationdate><topic>Actuarial science</topic><topic>Advisors</topic><topic>Collaboration</topic><topic>Cooperation</topic><topic>Decision making</topic><topic>Defined benefit plans</topic><topic>Employers</topic><topic>Funding</topic><topic>Investment policy</topic><topic>Management decisions</topic><topic>Objectives</topic><topic>Pension plans</topic><topic>Public domain</topic><topic>Risk management</topic><topic>Sessional meetings: papers and abstracts of discussions</topic><topic>Trustees</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Hitchcox, A. N.</creatorcontrib><creatorcontrib>Patel, C.</creatorcontrib><creatorcontrib>Ramsey, C. J.</creatorcontrib><creatorcontrib>Studd, E. L.</creatorcontrib><creatorcontrib>Ma, L. T.</creatorcontrib><creatorcontrib>Elliott, M. B.</creatorcontrib><creatorcontrib>Keogh, T. W.</creatorcontrib><collection>Cambridge University Press Wholly Gold Open Access Journals</collection><collection>CrossRef</collection><collection>Global News &amp; ABI/Inform Professional</collection><collection>Trade PRO</collection><collection>ProQuest Central (Corporate)</collection><collection>ProQuest_ABI/INFORM Collection</collection><collection>ABI/INFORM Global (PDF only)</collection><collection>Accounting &amp; Tax Database (Proquest)</collection><collection>ProQuest Central (purchase pre-March 2016)</collection><collection>ABI/INFORM Global (Alumni Edition)</collection><collection>Accounting &amp; Tax Database (Alumni Edition)</collection><collection>ProQuest Central (Alumni) (purchase pre-March 2016)</collection><collection>ABI/INFORM Collection (Alumni Edition)</collection><collection>ProQuest Central (Alumni)</collection><collection>ProQuest Central</collection><collection>Accounting, Tax &amp; Banking Collection</collection><collection>AUTh Library subscriptions: ProQuest Central</collection><collection>ProQuest Business Premium Collection</collection><collection>ProQuest One Community College</collection><collection>ProQuest Central</collection><collection>Accounting, Tax &amp; Banking Collection (Alumni)</collection><collection>Business Premium Collection (Alumni)</collection><collection>ABI/INFORM Global (Corporate)</collection><collection>ProQuest Business Collection (Alumni Edition)</collection><collection>ProQuest Business Collection</collection><collection>ABI/INFORM Professional Advanced</collection><collection>ABI/INFORM Professional Standard</collection><collection>ABI/INFORM global</collection><collection>ProQuest One Business</collection><collection>ProQuest One Business (Alumni)</collection><collection>ProQuest One Academic Eastern Edition (DO NOT USE)</collection><collection>ProQuest One Academic</collection><collection>ProQuest One Academic UKI Edition</collection><collection>ABI/INFORM Collection China</collection><collection>ProQuest Central Basic</collection><jtitle>British Actuarial Journal</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Hitchcox, A. N.</au><au>Patel, C.</au><au>Ramsey, C. J.</au><au>Studd, E. L.</au><au>Ma, L. T.</au><au>Elliott, M. B.</au><au>Keogh, T. W.</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Integrated risk management for defined benefit pension schemes: a practical guide</atitle><jtitle>British Actuarial Journal</jtitle><addtitle>Br. Actuar. J</addtitle><date>2018</date><risdate>2018</risdate><volume>23</volume><spage>1</spage><epage>60</epage><pages>1-60</pages><artnum>e1</artnum><issn>1357-3217</issn><eissn>2044-0456</eissn><eissn>1748-5002</eissn><abstract>The Working Party has developed some practical hints and tips for those developing integrated risk management (IRM) plans for UK defined benefit pension schemes in the context of the requirements of the Pensions Regulator. Four case studies are presented to illustrate its conclusions, which are encapsulated in the ten commandments for effective IRM. IRM is the consideration of investment, funding and covenant issues, and how these interact. Its purpose should be to aid decision making and so should have a clear outcome in mind. It should be a continuous process and should form part of everyday trustee governance – it is not simply a one-off exercise. Whilst most Trustees and advisors consider funding issues when setting their investment strategy and vice versa, fewer fully integrate covenant into their decision-making process. However, covenant underpins all risk taken in a pension scheme and so needs to form a regular part of trustee discussions and analysis by advisors.</abstract><cop>Cambridge, UK</cop><pub>Cambridge University Press</pub><doi>10.1017/S1357321717000095</doi><tpages>60</tpages><oa>free_for_read</oa></addata></record>
fulltext fulltext
identifier ISSN: 1357-3217
ispartof British Actuarial Journal, 2018, Vol.23, p.1-60, Article e1
issn 1357-3217
2044-0456
1748-5002
language eng
recordid cdi_proquest_journals_1985641006
source Business Source Ultimate【Trial: -2024/12/31】【Remote access available】; Cambridge Journals Online; ABI/INFORM global; JSTOR Archival Journals and Primary Sources Collection
subjects Actuarial science
Advisors
Collaboration
Cooperation
Decision making
Defined benefit plans
Employers
Funding
Investment policy
Management decisions
Objectives
Pension plans
Public domain
Risk management
Sessional meetings: papers and abstracts of discussions
Trustees
title Integrated risk management for defined benefit pension schemes: a practical guide
url http://sfxeu10.hosted.exlibrisgroup.com/loughborough?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-01-02T11%3A44%3A48IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-jstor_proqu&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Integrated%20risk%20management%20for%20defined%20benefit%20pension%20schemes:%20a%20practical%20guide&rft.jtitle=British%20Actuarial%20Journal&rft.au=Hitchcox,%20A.%20N.&rft.date=2018&rft.volume=23&rft.spage=1&rft.epage=60&rft.pages=1-60&rft.artnum=e1&rft.issn=1357-3217&rft.eissn=2044-0456&rft_id=info:doi/10.1017/S1357321717000095&rft_dat=%3Cjstor_proqu%3E26891351%3C/jstor_proqu%3E%3Cgrp_id%3Ecdi_FETCH-LOGICAL-c2975-f5af595f788c5a3fae911e0677feda94510a567d56cb339a65ebba4cccd748733%3C/grp_id%3E%3Coa%3E%3C/oa%3E%3Curl%3E%3C/url%3E&rft_id=info:oai/&rft_pqid=1985641006&rft_id=info:pmid/&rft_cupid=10_1017_S1357321717000095&rft_jstor_id=26891351&rfr_iscdi=true