Matt in New York: 15 January 2010 - 12 February 2010
Pension plans in the US
One of the more interesting differences that I'd like to elaborate on in this blog relates to the parties who hold responsibility for the funding of employer-sponsored defined benefit pension plans.
As you may be aware, in the UK, a group of individuals (called the "trustees") are responsible for the day to day running of a defined benefit pension plan, and are required to act in the best interests of the members of the pension plan. How a pension plan is funded (i.e. how funds are set aside to meet future benefit payments to members) is determined by agreement between the trustees and the employer sponsoring the pension plan, taking into account guidance issued by regulatory bodies such as the Pensions Regulator. The trustees and employer may have different priorities, and hence negotiations between the two parties are a key dynamic of UK pension plans.
By contrast, any decisions as to how a pension plan is funded are made solely by the employer. As a result, the government takes a more hands-on approach to encouraging sufficient funding of pension plans by setting more prescriptive assumptions to be used to value pension plan liabilities, and placing restrictions on the benefits paid out by poorly funded plans. This leads to slight differences in the work carried out by pension actuaries in the UK and the US.
Life in Manhattan
Outside of work, Hewitt have arranged for me to stay in an apartment just over the Hudson River in Jersey City, with good connections to Manhattan, so I can get into the city in just ten minutes or so. As a result I've spent much of my time outside of work sight-seeing and exploring the city's various cultural offerings.
Early February sees Restaurant Week come to New York, with many top restaurants across the city offering great deals through fixed price menus. With this, and so many great restaurants to try across the city, I think I'm already putting on weight!
Luckily, there are convenient coach day trips from the city out to various local skiing destinations, and so I've managed to get at least some exercise out on the slopes and take advantage of the heavy snowfall we've experienced here recently.
Other personal highlights from my first month or so include trips to MoMA (the Museum of Modern Art) and AMNH (the American Museum of Natural History), going for Dim Sum in ChinaTown and attending my first Superbowl party!
What next?
In the coming fortnight, I have friends visiting from Bristol and so look forward to the first of many stints I will be doing as a tour guide. I also look forward to continuing to learn more about US pension plans and applying my actuarial skills to the different issues that these raise.