Is the 'gilts plus' model broken?
23 Mar 2017 - 14:00 to 15:00
For many DB schemes, the current low yield environment is pushing deficits on some measures to record highs. But the size of the deficit depends crucially on how it is assessed. As a result we are frequently being asked: is the 'gilts plus' model broken?
Hundreds of billions of cash has been poured into schemes over the past 15 years, yet deficits have kept rising. For schemes facing valuations this year, you may be keen to take a step back and explore alternative approaches to traditional deterministic gilts plus discount rates.
Michael O’Higgins, former Chair of tPR sits firmly in the broken camp, believing flawed methodologies for measuring scheme obligations are causing UK businesses to misallocate cash to pension schemes at the expense of wider business needs. But is he right?
In this webinar we'll explore:
- Why people are concerned about 'gilts plus' valuations models, and whether they are right to be
- A range of alternative funding approaches
- How you might decide upon the best approach for your scheme
- Jon Hatchett, Partner
- Susan McIlvogue, Partner
- Jemma Beattie, Senior Investment Consultant
Who is this webinar for?
- Trustees and sponsors of defined benefit pension schemes.
This session will be followed by an online Q&A.