• Online analytics tool helps trustees and sponsors establish an integrated approach to funding and investment risk management
Pension Risk Navigator (“Navigator”) uses a range of modelling techniques to analyse the key elements of a plan, providing trustees with:
• Information on the latest funding position and asset strategy
• The expected development of membership profiles and future cash flows required to make informed and timely decisions.
• A comprehensive audit trail of the decision-making process.
Navigator is interactive and allows trustees to model all the key assumptions, including discount rates, inflation and mortality and compare real-time results. It accurately models recovery plans over different periods, structures and investment return assumptions, incorporating existing deficit recovery plans, and can show trustees the impact of changes to a plan, accurately modelling the “what if” questions at the touch of a button. Moreover it then models the future investment risks associated with each scenario to ensure that the full implications of each decision are properly understood.
“Technology is helping improve work efficiencies for trustees and plan sponsors not only by removing some of the more administrative elements but also by enabling them to achieve better outcomes by giving them the tools to analyse their investment strategy, identify the risks they are running and develop clear benchmarks for their plan,” said David Piltz, head of Trustee Services at Buck Consultants at Xerox. “In order to make the best decisions for their members, trustees need to have a continuous understanding of how their plan is developing, the risks their plan faces and the options available.
Pension Risk Navigator is included within Buck’s Global Vision portal which gives trustees and sponsors a holistic overview of their plan, pulling together in one convenient place all the documents they may require and enabling them to track and manage risk efficiently and effectively.
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