Actuarial Solutions
Corporate Pensions are becoming increasingly complex, demanding a high level of service. Invesco's team of actuaries is focused on meeting this challenge. We believe that our ability to communicate the complicated world of actuarial science in real, understandable terms distinguishes us from our competitors.
Actuarial advice can be an effective business tool for you, not just to manage your benefit plans, but also to positively impact your bottom line.
Our client focused solutions can guide you through the changing world of employee benefits, determining the optimal strategy for Defined Benefit, Defined Contribution, or a combination of both plan types.
Contact: actuarial@invesco.ie
Scheme Valuations
As a result of volatile equity markets, low bond yields and improving longevity, many Defined Benefit Plans are now facing funding deficits.
The solution to these problems requires an understanding of the underlying issues and their interacting effects on one another, as well as an appreciation of future developments for employee benefits.
In keeping with our partnership approach to working with clients, we actively engage with employers and trustees in undertaking valuations.
In order to arrive at a valuation, certain important assumptions must be made, e.g.
- future investment returns
- salary inflation
- future member profile
- future pension increases
These assumptions can only be made in conjunction with you, and we enter into constructive dialogue to arrive at as accurate a starting point as possible.
Scenario testing plays a key role in our development of any solution, as alternative strategies are presented and compared. These take account of the different demands imposed by your business, members and trustees, as well as being driven by the specific structure of you plan.
We emphasise communication to members to fully realise the resources and commitment spent in developing any solution.
Contact: actuarial@invesco.ie
Pension Accounting & Financial Reporting
Accounting standards for reporting pension costs have crystallised the need for expert and timely actuarial advice.
New requirements of FRS17, the wider application of the international accounting standard IAS19, and US standard FAS87, all mean a full understanding of your bottom line implications becomes even more vital.
Disclosures within accounts can effect perception of a Company, impact on credit ratings, restrict its ability to raise capital, and ultimately its value.
We assist and guide you to produce fully compliant pension accounting disclosures at every stage. We provide actuarial guidance to help you establish an appropriate set of assumptions. These assumptions have a significant impact on the final disclosure, and hence bottom line, due to the inherent volatility and nature of pension accounting.
Our actuaries will manage ongoing changes to accounting standards, analysing their impact and identifying any action required in response.
Contact: actuarial@invesco.ie
Asset/Liability Modelling
While some of the factors influencing the cost of providing Defined Benefit Plans may be largely beyond trustees' and employers' control – benefits, bond yields, mortality, even some aspects of salary inflation – one area where at least a degree of influence is possible is through the investment strategy employed.
The purpose of a good investment strategy is to appropriately match the assets of a benefit plan with its liabilities. To achieve this, a rigorous appreciation of the Plan's profile is necessary to understand the unique nature and term of its liabilities.
Optimal asset portfolios can be developed to address the Plan's characteristics. It must also consider underlying business objectives and match the strategy in developing any solution.
We can help you develop your pension investment strategies by presenting a number of possible solutions. These solutions not only detail possible outcomes, but also the likelihood of those results being achieved in conjunction with the possible range of results that may actually be experienced.
Significantly, as we work in partnership, you can exercise control over your investment strategy.
Our Investment practice can also provide expertise in selecting a Fund Manager, so any investments strategy realises its full potential. We monitor and measure each investment manager's fund performance, style, risk characteristics, processes, and portfolio structure. Where changes occur, or concerns arise in relation to particular Managers or Portfolios, we will advise you and discuss alternative responses to the situation.
Contact: actuarial@invesco.ie
Mergers & Acquisitions
Companies involved in mergers, acquisitions, disposals or joint ventures require specialist advice. That advice not only has to be of the highest quality, it must be delivered under severe time constraints.
Our actuaries are experienced in providing timely advice on all compensation and human resources issues, including benefits, strategy planning, negotiations, implementation and integration.
It is important to fully determine what benefit schemes exits, both past and present, and understand the commitment being undertaken in assuming ownership of these Plans. Often, benefits provided under a particular arrangement may not be fully documented.
The funding levels and their accuracy for all benefit plans are reviewed, and their likely future funding status assessed. Future funding will consider how liabilities might change for existing members under a new business structure.
Integration of benefit schemes can pose potential difficulties where similar employees are provided with different levels of benefits.
This high level of consulting enables our clients to address these problems effectively at the negotiation stage, avoiding later uncertainty and complication. We recognise the special demands of Merger & Acquisitions, which call for quality and timely advice, delivered with discretion.
Contact: actuarial@invesco.ie
International Expertise
As the Irish partner of the International Benefits Network, (IBN), we can manage global projects, utilising regional specialists around the world.
Today's business environment is truly international. Mergers, acquisitions, and other types of cross-border investments have become commonplace as successful organisations continue to seek profitable growth.
These organisations know that to succeed outside their home country they must accommodate cultural and structural differences in each country where they have local business operations.
This is especially true in the area of employee remuneration where the package needs to be competitive, motivational and cost effective in local terms. At the same time, organisations want an arrangement that is integrated as far as possible with their global benefit philosophy.
International Benefits Network is a worldwide network of independent actuaries, employee benefit consultants and brokers. Established in 1989, the network consists of recognised leaders in employee benefit consultancy in more than 40 countries.
In 2005, IBN members employed over 3,000 staff, including more than 120 actuaries and 300 consultants.
Contact: actuarial@invesco.ie