The Task Force on Cashflows approach will focus its work on the following issues:
- Assess the possibility of improving the current analysis of Pension Scheme’s sustainability through a cashflow analysis approach.
- Propose metrics that would provide practical management information and to support the preparation of the Framework for next Stress testing of IORPs.
- Comment how the CFs approach could support the assessment of the intergenerational balance in pensions.
- Comment on as to how ESG considerations can be assessed by means of a cash flow analysis.
- Provide advice to the main European stakeholders on the topic, such as EIOPA in the process of preparation of the next IORPs stress test.
- The CFs approach could also improve the analysis of the resilience of the IORPs schemes considering short-term extreme scenarios as a result of Covid-19.
The draft version of ToR was approved by the AAE Board on 10th March 2021 and is attached for your information. The Cashflows Task Force will report to the Pensions Committee of the AAE and its term of operation is foreseen till the AAE spring meeting of 2023.
The importance of the topics like sustainability, ESG, intergenerational balance requires involvement of the experts from Risk management and Insurance area.
Therefore, we are seeking volunteers to contribute to this project either from participants in the previous CFs TF, members of AAE committees or from elsewhere. Member Associations are invited to nominate delegates to this Task Force. Please note that members of AAE working groups can include non-actuaries and do not represent particular Full Member Associations, but are selected on the basis of the expertise needed to achieve the specific goals of the working group.
If you are interested in contributing to this important project or know of others willing to join the CFs’ TF then please respond by 12 June 2021 at the latest so that we can plan a suitable meeting shortly afterwards.
Please send your response to the AAE secretariat at [email protected].