F71PD Pensions B

Course co-ordinator(s): Carmen Boado Penas (Edinburgh).

Aims:

The aims of this course are:

  • To provide a good understanding of the risks and uncertainties facing the parties involved in pension provision
  • To provide a thorough understanding of actuarial models used in the management of pension schemes
  • To provide an understanding of risk management in pension schemes, including the use of reinsurance
  • To provide an understanding of how to monitor the experience of pension schemes

Detailed Information

Course Description: Link to Official Course Descriptor.

Pre-requisite course(s): F71PC Pensions A .

Location: Edinburgh.

Semester: 2.

Syllabus:

Risks and Uncertainties

  • Benefits and Contributions
  • Returns on Assets
  • Security
  • Risk Management including Reinsurance

Population Projections

  • Models and their Weaknesses
  • Socio-economic Factors

Models

  • Objectives
  • Features
  • Uses
  • Sensitivity Analyses

Managing a Social Security Scheme

  • Evaluating Liabilities
  • Assessing Contributions

Valuation of a Pension Scheme

  • Selecting Assumptions
  • Calculating Values for Benefits, Contributions and Assets
  • Applying Results
  • Analysing Asset-Liability Matching
  • Analysing Surplus or Deficit
  •  

Discontinuance

  • Determining Benefits

Learning Outcomes: Subject Mastery

On completion of this course the student should be able to:

  • Describe the risks and uncertainties affecting benefits, contributions, returns on assets and security
  • Describe the process of population projection and its main determinants
  • Discuss the use of actuarial models for decision making purposes in non-state pensions
  • Discuss the application of actuarial methods and techniques to the financial management of a social security scheme
  • Discuss the principles behind the determination of assumptions for valuing future benefits and contributions
  • Discuss the principles behind the determination of discontinuance terms in respect of benefits
  • Discuss how to determine values for assets, future benefits and future contributions
  • Discuss the application of actuarial methods and techniques to the financial management of defined contribution pension schemes
  • Analyse the asset-liability matching requirements of a provider of pensions and related benefits
  • Discuss the principles underlying the use of re-insurance
  • Identify the sources of surplus/deficit for a benefit provider
  • Explain why and describe how the actual experience of a pension scheme should be monitored and assessed

 

Learning Outcomes: Personal Abilities

  • Show an appreciation of the interface between academic theory and industrial practice
  • Demonstrate the ability to learn independently and as part of a group
  • Manage time, work to deadlines and prioritise workloads
  • Present results in a way that demonstrates that they have understood the technical and broader issues of the pensions environment
  • Show an appreciation of the various potential conflicts between pensions stakeholders

SCQF Level: 11.

Credits: 15.

Other Information

Help: If you have any problems or questions regarding the course, you are encouraged to contact the course leader.

Canvas: further information and course materials are available on Canvas