Kennel Club Case Study
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                    Case Study
Successful actuarial valuation for the Kennel Club – A win-win for Trustees and Employer
   Key outcomes
Smooth transfer of data and an efficient pension fund valuation – with a provider that is fair on fees
A sensible value placed on liabilities – removing the risk of unaffordable contributions for the Employer
Concerned about the risk of an Employer contribution increase as a result of high liabilities, Trustees of the Kennel Club Pension Fund turned to First Actuarial.
contributions due to high liabilities
The Risk of increased Employer
  High liabilities in the Kennel Club Pension Fund were starting to worry the Trustees and Employer. “The Scheme has been closed to new members for over a decade, but existing members are still accruing benefits,” explains Michael Townsend, chair of the Kennel Club Pension Fund Trustees. “And with a relatively young active membership, the Scheme’s liabilities stretch out into the long term.”
The Trustees, with the backing of a strong employer covenant, hold a high proportion of equities, in the belief
that they produce better returns over the long term than gilts or bonds.
The previous provider had measured the liabilities on the basis of a gilt yield, even though the Trustees only had a small proportion of funds invested in gilts. The valuation methodology made limited allowance for the higher return that the equities were expected to yield in the longer term. The Trustees and Employer were concerned that
the liabilities were unnecessarily high and that the resulting deficit would have to be funded by increasing Employer contributions.
     Peace of mind for Trustees – with validation of their equity-focused strategy from investment specialists
the higher returns the pension fund could expect on its equities.
“First Actuarial then produced an actuarial analysis, and came back
to discuss it with us,” says Michael. “They fed our comments into their final valuation, which the Trustees agreed.”
The valuation also needed the approval of the Employer. “First Actuarial supported the Trustees through that process,” says Michael. “We got the Kennel Club’s Chief Financial Officer involved and came to an agreement.”
The A fresh approach to measuring
The Trustees engaged First Actuarial as their new providers. “We’d had a number of problems with our previous provider,” says Michael. “They were slow to respond and looked for any opportunity to charge extra fees. We were impressed with First Actuarial’s attention to detail and the transfer of member data ran smoothly.”
Before the valuation, First Actuarial met the Trustees to discuss how the assessment of the liabilities could reflect the way they are actually invested. First Actuarial proposed a sensible alternative that recognised

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