01/03/2013
AGENDA
FMAS INDUSTRY DAY PRESENTATION TO UCC STUDENTS
What is an actuary?
Where do actuaries work?
What skills do actuaries need?
Why become an actuary?
How do you become an actuary?
My background – (in pensions)
What does a pensions actuary do?
What does an investment actuary do?
Michelle Ward Technical Analyst February 2013
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WHAT IS AN ACTUARY
Wikipedia says:
An actuary is a business professional who deals with the financial impact of risk and uncertainty
Website tagline for institute:
Making financial sense of the future 3
WHAT SKILLS DOES AN ACTUARY NEED?
Excellent communication skills
Good team player
Highly numerate
Detail oriented
Organisation and time management skills
Microsoft office skills – excel, word and
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WHY BECOME AN ACTUARY?
Math + Business = HOT!!!!!
Work life balance
Challenging career
Travel
powerpoint
Dedication
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WHAT DOES A PENSIONS ACTUARY DO? - DEFINED CONTRIBUTION SCHEMES
STUDY AND EXAMS
Employee and employer contribution s
Core technical – CT’s (exemptions from FMAS) CT1 – CT9
Core applications CA1 CA2 (Modelling) CA3 (Communications)
Grows with investment return
Used to purchase income payable from retirement
Need CT’s and CA1 before sitting
Specialist technical (choose any two)
Specialist application (choose any one)
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SA1 – SA7
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WHAT DOES A PENSION ACTUARY DO?
Employer makes a promise to pay employee a pension when they retire
Calculate the present value of the benefit promise made – to see if enough money has been set aside
E.g. 2/3rds of salary at retirement
Employer puts aside money cover this
There are significant risks to the employer:
Employee lives for a long time in retirement Return on investments held are low
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ST1 – ST9
WHAT DOES A PENSIONS ACTUARY DO? - DEFINED BENEFIT SCHEMES
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My job is to help the Employer manage these risks
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Advise the client on the contributions required to meet the promises made (every three years) Disclosure of the cost of the pension scheme in clients annual accounts Also provide wide range of consulting services
Design of pension scheme Communication exercises to aid understanding
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WHAT DOES AN INVESTMENT ACTUARY DO
Investment strategy reviews (DB schemes) Risk assessment Optimal Liability Matching Portfolios Optimal Growth Portfolios Journey Plans
ANY QUESTIONS?
Investment Strategy Reviews (DC Schemes) Risk Assessment Fund Choices Default options
Implementation
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Governance Frameworks Asset Transitions
Ongoing monitoring
Michelle Ward
[email protected]
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