The current economic crisis - now a full-blown recession - that has been at the forefront of our minds over the past 18 months has intensified the pressure on pension funds and those charged with running schemes. We have seen falling asset vales mirrored by rising liabilities, all adding to the already significant size of many schemes' liabilities.

At times like these, pension fund professionals turn to their advisers, none more so than their actuaries. Whether it is dealing with deficits, assessing the scheme's mortality profile, measuring sponsor covenant strength, considering scheme changes or dealing with the second round of SFO valuations and negotiations with employers on changes to the underlying assumptions, trustees are increasingly turning to their actuaries.

In undertaking this work, trustees take reassurance from the high professional standards of their actuaries and the continuing support and professional development provided by the Actuarial Profession. While the events of the past 18 months have led to many hours of analysis, it is vital that all professions operating in the finance industry not only contribute to solving the problems but also help to build a more robust system for the future. The role of the actuarial profession is pivotal.

The continuous evolution of the pensions landscape means the Profession is central to tackling issues such as pension fund deficits, the pressures on employer covenants and longevity.

“The continuous evolution of the pensions landscape means the Profession is central to tackling issues such as pension fund deficits, the pressures on employer covenants and longevity.”

Joanne Segars

Chief Executive, National Association of Pension Funds