17 April 2007
A survey by PricewaterhouseCoopers LLP has found that up to 44
per cent of employers are still using the same firm of actuarial
advisers as their trustees, a situation that can create risks for
both parties.
Marc Hommel, partner at PricewaterhouseCoopers, said: "A growing
number of employers and trustees are recognising that using the
same firm of advisers is increasingly hard to justify and, in some
cases, risky. There is gathering pace for appointing independent
firms."
Mr Hommel said that corporate transactions are areas where
employers and trustees recognise the need for separate advice. "The
employer wants to do what is best for the business but the trustee
needs to do what is best for members," he said.
However, he added that there is less recognition of the need for
independent advice for more routine matters affecting schemes, such
as setting up the scheme-specific funding arrangements. In such
situations the actuary, while formally advising the trustee, can
come under pressure to use a set of assumptions that give rise to a
lower contribution rate for the employer at a time when the trustee
should be seeking higher contributions.
The survey also found that thirty per cent of employers believe
that pensions have become more important for attracting, motivating
and retaining senior executives and other staff.
