Pensions and Retirement Training Course on Disability and Early Retirement Assumptions

Module 1: Introduction to Disability and Early Retirement Assumptions
Definition and significance of disability and early retirement in pension planning
Impact on plan liabilities, funding, and sustainability
Regulatory and actuarial standards governing assumptions
Case study: Effect of high early retirement rates on a DB plan
Group discussion: Challenges in modeling disability and early retirement

Module 2: Pension Plan Design and Early Exit Features
Overview of DB, DC, and hybrid plans
Provisions affecting early retirement and disability benefits
Early retirement incentives, flexible retirement ages, and disability benefits
Workshop: Analyzing plan design features for early exit risk
Case study: Optimizing plan design to manage early exit trends

Module 3: Actuarial Methods for Disability and Early Retirement
Data collection and validation for assumptions
Mortality, disability incidence, and early retirement rates
Adjusting assumptions for gender, occupation, and socio-economic factors
Exercise: Developing disability and early retirement assumptions for a sample plan
Discussion: Best practices in actuarial assumption setting

Module 4: Modeling Impact on Pension Liabilities
Integration of disability and early retirement assumptions into DB and DC valuations
Effect on accrued benefits, funding status, and contribution requirements
Scenario and sensitivity testing for early exit trends
Practical exercise: Modeling liability impact under different assumptions
Case study: Pension liability projection adjustments for early retirements

Module 5: Risk Assessment and Sensitivity Analysis
Identifying risks related to early exits and disability
Sensitivity testing for assumption changes (disability rates, retirement ages)
Stress testing and scenario analysis to evaluate funding and solvency implications
Workshop: Conducting risk assessment for sample pension plans
Discussion: Managing uncertainty in assumptions

Module 6: Funding and Contribution Strategies
Aligning contribution strategies with early exit and disability assumptions
Evaluating adequacy of reserves and funding levels
Adjusting employer and employee contributions to mitigate risk
Exercise: Designing funding strategies considering early exit trends
Case study: Funding approaches for high-risk pension plans

Module 7: Regulatory and Accounting Considerations
Compliance with IFRS, IPSAS, and local actuarial standards
Reporting of disability and early retirement assumptions in financial statements
Preparing actuarial reports and sensitivity disclosures for regulators and trustees
Exercise: Drafting regulatory-compliant assumption reports
Discussion: Avoiding common pitfalls in regulatory reporting

Module 8: Communication and Stakeholder Engagement
Explaining the impact of assumptions to trustees and members
Visualizing potential liabilities and funding implications
Preparing executive summaries and presentations for decision-making
Group exercise: Presenting early retirement and disability assumptions to board members
Case study: Effective communication of actuarial assumptions to stakeholders

Module 9: Best Practices and Industry Benchmarks
Reviewing industry standards and benchmarking data
Lessons from historical trends in early retirement and disability
Incorporating best practices into assumption setting and monitoring
Workshop: Benchmarking assumptions against peer plans
Discussion: Continuous improvement in assumption modeling

Module 10: Case Studies and Practical Applications
Review of real-world pension plan experiences with early retirement and disability
Group simulation: Complete valuation incorporating disability and early retirement assumptions
Developing actionable recommendations for risk mitigation and plan sustainability
Lessons learned, best practices, and key takeaways
Final discussion, review, and certification