15 million members. 183 sections. 20 schemes.
How Government Actuary's Department (GAD) used a streamlined approach to complete actuarial valuations of 20 public service pension schemes.
Image of person with magnifying glass looking at word 'pension'.
The Government Actuary’s Department (GAD) used a centralised, streamlined approach to complete the 2016 actuarial valuations of 20 public service pension schemes.
Several UK public service pension schemes are subject to actuarial valuations every 4 years. These valuations ensure contribution rates paid into the schemes reflect the value of benefits earned by the employee members. This allows employers to account appropriately for the costs of pension benefits they are providing to employees.
Standardised and consistent
We built on the centralised functional design we introduced for the 2012 valuation project which meant we were able to manage 20 separate scheme valuations as a single formal project.
Specialist actuarial teams carried out the technical analysis and calculation work. We rapidly updated the results when parameters changed, achieving a greater level of consistency across the 20 schemes to provide advice and regular progress updates to clients and stakeholders.
Millions of members
We validated record data for around 15 million people, as well as member movements since the previous valuation. This is critically important as all the valuation results depend on the data. We analysed member experience against the previous assumptions and recommended new demographic assumptions. New scheme governance structures were finalised in advance of this round of valuations.
Scheme advisory boards made up of employer and member representatives are central to valuation process. We attended these board meetings and briefed stakeholders, so they understood our analyses.
Image of pension files.
Data visualisation
We carried out extensive quality checking and review, including analysis of cost changes. We kept stakeholders informed throughout the process and, at the end, we prepared formal reports. To aid understanding of scheme data, experience, and valuation results, we increased our use of charts and other data visualisation techniques. We believe this approach leaves us and our clients well-placed for the March 2020 round of valuations.