Pensions and Retirement Training Course on Mortality and Longevity Risk

Module 1: Introduction to Mortality and Longevity Risk
Definition and significance of mortality and longevity risk
Impact of demographic changes on pension schemes
Overview of mortality trends and projections
Regulatory and actuarial standards for mortality assumptions
Case study: Pension fund exposure to mortality risk

Module 2: Data Collection and Quality for Mortality Analysis
Sources of mortality and longevity data
Data validation and cleaning techniques
Historical vs. projected data analysis
Exercise: Preparing and validating sample pension population data

Module 3: Mortality Tables and Actuarial Assumptions
Life tables and mortality rates
Gender, age, and socio-economic adjustments
Incorporating mortality improvements and future trends
Exercise: Calculating life expectancy and mortality probabilities

Module 4: Longevity Risk Measurement and Quantification
Understanding longevity risk and its financial impact
Methods to quantify risk in defined benefit and defined contribution plans
Stochastic and deterministic approaches to longevity modeling
Practical exercise: Projecting pension liabilities under varying longevity scenarios

Module 5: Actuarial Modeling of Mortality and Longevity
Introduction to actuarial models and software tools
Building mortality and longevity projections
Scenario analysis and sensitivity testing
Workshop: Constructing a simple mortality/longevity model

Module 6: Impact on Pension Liabilities and Funding
Effects of mortality and longevity changes on DB and hybrid plans
Valuation of liabilities under different mortality assumptions
Funding status, surplus, and deficit implications
Case study: Assessing the financial impact of longevity trends on pension plans

Module 7: Risk Mitigation Strategies
Longevity insurance and hedging techniques
Reinsurance and risk transfer solutions
Diversification and longevity pooling
Strategies for adjusting contribution and benefit structures
Practical exercise: Designing a mitigation plan for a sample pension fund

Module 8: Regulatory and Reporting Considerations
Compliance with IAS 19, IFRS, and local actuarial standards
Reporting longevity and mortality risks to trustees and regulators
Incorporating assumptions in actuarial valuation reports
Exercise: Preparing a mortality and longevity risk disclosure

Module 9: Communication and Stakeholder Engagement
Explaining mortality and longevity risks to non-technical stakeholders
Reporting funding implications and risk management strategies
Visualization techniques for effective communication
Group exercise: Drafting a stakeholder-friendly risk report

Module 10: Case Studies and Practical Applications
Review of real-world pension fund experiences with mortality/longevity risks
Group simulation: Assessing, modeling, and mitigating risks for a hypothetical fund
Lessons learned and best practices
Developing actionable recommendations for pension plan sustainability
Final discussion, review, and certification