Pension liabilities: sense and non-sense

Our opposition to the ASB’s proposal to use a risk-free rate to discount pension scheme liabilities has been the subject of an ACT press release earlier this week; it will be interesting to see how much external attention is paid to the arguments that we and other organisations are making. At the heart of our opposition lie two strands: that there is an underlying inconsistency between the approach proposed for valuation of assets and liabilities – and this should be addressed; and that the standard setters cannot disregard the societal consequences of the arbitrary conclusion on the use of a risk-free rate, which will inevitably result in a greater number of pension scheme closures.

Although it is the summer period and the time to receive so many ‘out of office’ messages the team here at the ACT are busy on a number of initiatives. The talkingtreasury programme of one-day, free to attend, thought-leadership events is well underway internationally; during September talkingtreasury is in Dusseldorf and Stockholm; in October we will be taking the event to Hong Kong. We also have a major development in place to support the treasury community in the Middle East, with a significant commitment on our part to act as a catalyst bringing together professionals in the region.

We continue to watch carefully how external conditions may impact core activities of the ACT. We are emphasising the benefits of taking an ACT qualification – a message that should ring very true at a time when the crucial differentiation between candidates for promotion or recruitment may come down to the relevance and completeness of the qualifications held.

A quick update may help you or your colleagues make the best use of your skills: we are offering a 10% discount on selected courses booked before the end of September. October courses include Fundamentals of Corporate Finance and Core Borrowing Techniques. A further 10% discount is available if you book Advanced Borrowing Techniques to follow on from the course on Core Borrowing Techniques.

We have seen considerable activity on the website since the redesign launched at the beginning of last month. To get the most benefit from the site you will need to update your profile under 'My Account' and check the appropriate boxes for areas of interest and expertise. Among other benefits, this will result in regular updates on new content for your specified topics and enable you to search for other members who may well have relevant experience of your current issues. If you complete your profile today, you stand the chance of winning a free place at one of our training courses or conferences.

Visitors to our website can access our guidance on “Contingency Planning for a Downturn”, which is full of highly relevant advice that is both corporate and personal. It is – if I dare say it – reinforced by the wisdom of age; it was produced by colleagues in the ACT who have experienced more than one cycle of economic stress and the lessons learned from that remain as topical as ever.

Most members will know already that I have announced my intention to retire from the Chief Executive’s job at the ACT at the end of 2008. By that time I will have been in the role for nearly seven years. Although the decision to step down has not been at all an easy one, I am sure that there is an enormous opportunity for my successor to continue to grow the ACT’s contribution in the UK and internationally, for the direct benefit of our members but also for the benefit of the wider community in which we all live and work. The search for my successor is underway and the plan is to make an announcement in the autumn.

By richard.j.raeburn@gmail.com