Defined Benefits Actuarial Valuation & Two-Pot Implementation

The Challenge

A leading financial institution specialising in life insurance, investments, and retirement benefits required actuarial support for a well-established Defined Benefit fund. The fund needed oversight of all actuarial functions including statutory valuations, liability modelling, member-level calculations, reserving, and preparation of actuarial reports, along with ensuring compliance with all regulatory requirements and implementing the new Two-Pot legislation.

Our Solution

The Shard was entrusted with overseeing all actuarial functions of the fund, including statutory valuations, liability modelling, member-level reserving and reporting, solvency and funding ratio calculations, advising on regulatory compliance, and preparation of actuarial reports. During our engagement, we assisted in implementing the Two-Pot legislation, amending the fund's rules and performing the necessary calculations to allocate each member's retirement savings appropriately between the designated pots in accordance with the new regulatory framework.

The Results

The fund maintained compliance with all regulatory requirements while ensuring accurate valuation and reporting of liabilities. Our detailed actuarial assessments provided the institution with a clear understanding of the fund's financial position, supporting informed decision-making. The implementation of the Two-Pot legislation was carried out efficiently, with fund rules successfully amended and member savings reallocated in accordance with the new framework, ensuring a smooth transition for members while upholding the fund's long-term sustainability and alignment with evolving retirement regulations.