Hymans partner Calum Cooper says discount rates should be a sense check on strategy
Schemes need to get in place a "robust hedging strategy" to mitigate the impact of sudden falls in gilt yields, Buck has said.
A revised funding code for defined benefit (DB) schemes could have a £100bn impact on pension schemes and employers when published, KPMG analysis has found.
The UK's 5,600 defined benefit (DB) schemes saw their funding positions improve by one percentage point over the course of November, according to JLT Employee Benefits.
Most schemes use a gilts plus discount rate for funding valuations. But, as Ben Gold explains, these can be poor predictors of scheme returns and explores three alternatives for trustees to consider.
All 6,000 UK schemes had a surplus of £358bn by the end of last month when calculated under a best estimate return on their assets, according to First Actuarial.
Over half of pension professionals believe the 'gilts plus' valuation method is unhelpful in the current economic environment, according to Aon Hewitt research.
Michael O'Higgins argues a sensible approach to assessing DB cash flow needs would lead to better business decisions.