Pensions and Retirement Training Course on Using Valuation Results in Trustee Decisions

Module 1: Understanding Actuarial Valuations and Their Purpose
The role of actuarial valuations in pension governance
Key components of valuation reports: assumptions, liabilities, and assets
Funding ratios, deficit/surplus analysis, and trends
Common valuation methods (PUC, EAN, Aggregate) and their implications
Exercise: Reading and interpreting a sample valuation report

Module 2: Interpreting Key Assumptions and Sensitivities
Overview of demographic and economic assumptions
Discount rates, salary growth, inflation, and mortality assumptions
Sensitivity analysis and how small changes affect funding results
Case study: Impact of discount rate changes on pension liabilities
Discussion: What assumptions should trustees question or challenge?

Module 3: Using Valuation Results for Funding and Investment Decisions
Linking funding strategy to valuation outcomes
Determining contribution requirements and recovery plans
Aligning investment strategy with funding status and risk appetite
Scenario analysis for deficit management and asset allocation
Group exercise: Developing a funding response plan based on valuation results

Module 4: Communicating Valuation Outcomes and Governance Implications
Effective communication between actuaries, trustees, and members
Transparency and disclosure standards in pension reporting
Managing stakeholder expectations during funding shortfalls
Incorporating valuation results into annual reports and member statements
Role-play: Presenting valuation results to a trustee board

Module 5: Strategic and Fiduciary Use of Valuation Insights
Integrating actuarial insights into long-term planning
Balancing benefit promises with financial sustainability
Governance frameworks for responding to valuation outcomes
Fiduciary duties and decision accountability
Final case study: End-to-end decision process from valuation to trustee action