United Kingdom: Actuarial Services

In the first part of an occasional series looking at what it's really like to work at Deloitte, we speak to Elizabeth Hollinger, head of our Analytics Lab in Scotland...

The Department of Health and the Government Actuary’s Department have published an actuarial valuation of the NHS Pension Scheme which has an effective date of 31 March 2012.

Welcome to the new look Clyde & Co accountants’ newsletter.

Until 5 April 2006, it was mandatory for individuals to purchase an annuity with their accumulated pension funds when they reached 75. This ruling committed pension policyholders to make decisions about spouses’ pensions, escalations and guarantees that might not be required.

In this issue, aside from some of the more interesting changes in the Budget, there’s plenty to explore. We look at tax relief on pensions, HMRC’s policy on ASPs, news about ISAs, the maze of hedge funds and the advantages of offshore bonds

Regardless of earnings, it’s possible to make pension contributions of up to £3,600 gross in any fiscal year and benefit from tax relief. Many people are unaware that pension contributions can be paid for minors or non-working spouses up to £3,600 per annum and as they attract tax relief, the net cost is just £2,808.

When performing actuarial analysis, it is conventionally assumed that there is a zero correlation between mortality rates and the capital markets. This is generally supported by historic data since mortality rates have steadily and fairly smoothly decreased, whilst equity markets have behaved erratically in the short term, grown exponentially in the long-term, and interest rates have tended to revert to the mean.

The Pensions Ombudsman made some useful comments in a recent determination about the payment of death benefits and, in particular, how trustees should exercise their powers in relation to dependants’ benefits. This article looks at the implications of the Ombudsman’s views.

A recent case has considered the extent to which advisers owe a duty of care to third parties who rely on their advice.