A fresh take on risk and valuation
The objective of IORP II is to continue the development of workplace pensions and retirement savings in Europe to provide pension scheme members with better and sustainable financial outcomes for life after work. Now that IORP II has been transposed into legislation across Europe, trustees have to comply with new and additional regulations in the areas of risk, pension scheme management, governance and member communication. Given the amount of work involved in incorporating IORP II, pension scheme trustees should not be waiting to implement their compliance strategies.
We have partnered with Timothy Corcoran of Benefits Services to provide pension schemes with an independent, compelling and competitive risk focused IORP II solution. By combining our philosophy, knowledge and experience within the pensions and risk management fields, we ensure better outcomes for members, trustees and employers that result in compliance with governing legislation and regulations.
With our solution, the role of the risk management function holder is fully outsourced through the appointment of one of our experts, while our risk team will provide support with the execution of the tasks related to the risk management function.
Support with implementation of the key functions into the governance framework
Implementing a Risk Appetite Framework by setting risk objectives and tolerance levels
Support with implementing and performing of ORA, including a forward assessment of quantifiable and non-quantifiable risks
Drafting and reviewing relevant policies such as investment policy, ORA policy, communication policy and remuneration policy
Measuring and managing investment risks (including derivatives, hedging, ALM and defining the SAA)
Management of risks including operational risks, liquidity risks, concentration risks and ESG risks
Following the introduction of Solvency 2, the European Commission and Council have decided to continue their efforts to develop a common regulatory framework for the financial industry to strengthen its governance. On 13th January 2017, the regulators laid down a new milestone in the pensions market with IORP2, the new directive that replaced the existing and much amended directive 2003/41/CE. This new directive had to be transposed into national laws before 13th January 2019.
ReadThis article discusses one of the aspects of the new IORP II directive implementation - transparent communication. It outlines requirements regarding communication between funds and their members through an annual pension benefit statement (PBS). It guides through PBS's main goals and principles, explains its importance, and presents two model PBS's.
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