Philippe-N. Marcaillou
- Published in print:
- 2016
- Published Online:
- May 2016
- ISBN:
- 9780198738794
- eISBN:
- 9780191802003
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198738794.003.0001
- Subject:
- Economics and Finance, Financial Economics
To put the topic into context, this chapter provides an introduction to the pension fund industry in the UK. Statistics are presented regarding the risks that face UK defined benefit pension funds ...
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To put the topic into context, this chapter provides an introduction to the pension fund industry in the UK. Statistics are presented regarding the risks that face UK defined benefit pension funds (DB PF) based on the 2013 Purple Book that covers around 99% of pension funds: amount of liabilities, assets, deficit, funding ratio based on various liability valuations. The chapter shows what impact a variation of a few bassis points in gilts, equity markets, inflation, and a few years in terms of longevity has on the UK DB PF and the trends in terms of asset allocations. As a general introduction the chapter provides definitions regarding what a DB PF is, some important key words, and how simple cash flows are calculated. It introduces the governance of a DB scheme and provides a comprehensive overview of the parties involved in the management process.Less
To put the topic into context, this chapter provides an introduction to the pension fund industry in the UK. Statistics are presented regarding the risks that face UK defined benefit pension funds (DB PF) based on the 2013 Purple Book that covers around 99% of pension funds: amount of liabilities, assets, deficit, funding ratio based on various liability valuations. The chapter shows what impact a variation of a few bassis points in gilts, equity markets, inflation, and a few years in terms of longevity has on the UK DB PF and the trends in terms of asset allocations. As a general introduction the chapter provides definitions regarding what a DB PF is, some important key words, and how simple cash flows are calculated. It introduces the governance of a DB scheme and provides a comprehensive overview of the parties involved in the management process.
