304 September 2003_q1

Discussion in 'CA1' started by Edwin, Jul 5, 2013.

  1. Edwin

    Edwin Member

    The Revision notes and the Examiner's report mention quite technical content that should be disclosed to the members without specifying that we will also have to consider the background of our Pension scheme members.

    When putting down points, I had thot "most scheme members won't worry about the schemes investment strategy", but the ER mentions things like
    • List of key assumptions (yield, salary increases, pension increases)
    • Results presented in monetary and real terms, e.g. as % salary
    ?

    The Revision Notes for example speak about the members wanting to know the calculations that the Actuaries did?

    :eek:
     
    Last edited by a moderator: Jul 5, 2013
    Edwin, Jul 5, 2013
    #1
  2. Katherine Young

    Katherine Young ActEd Tutor Staff Member

    I'm not sure I entirely agree with you Edwin. Certainly there has to be some awareness of the financial sophistication of the scheme members, but that will impact how we present the information, not whether we present that information in the first place.

    Let's use one of your own examples; inflation:

    Most members might struggle if you talk to them about the effect of inflation on an actuarial projection, and yet this can be a very real risk for members. So instead, we can present results as a percentage of salary, with clear illustrations.
     
    Katherine Young, Jul 8, 2013
    #2

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