HBS ‘interesting’ but not yet ready for use – Actuarial Association of Europe


first_imgWhile the German pension fund association and PensionsEurope criticised the inclusion of the HBS in the assessment, Valkenburg said it made sense from “an efficiency point of view” to have pension funds calculate the HBS for the quantitative assessment and then use them in the stress test.But the actuary also argued that it was “very difficult to have a single framework for capital requirements” in the pensions sector, as schemes are “executing pension promises in very different ways”.He said using a single risk-free rate would work if all the pensions funds used stochastic evaluations, and the risks were modelled in the same way.But he said this was not the case in reality.“Using a risk-free rate to give a good estimate of the valuation of pension promises that are not fully guaranteed would lead to too high values if the risks are not modelled in the cash flows,” he said. Valkenburg said one of the most “valuable” aspects of the stress tests EIOPA will conduct among European IORPs will be the assessment of defined contribution (DC) plans.While industry group PensionsEurope has questioned whether the stress tests will yield any useful results regarding DC scheme members, Valkenburg stressed the importance of “informing members about how a stressed situation can impact them”.He added: “It is good to see DC is included in the stress tests for the first time because most new accrual of pension assets in Europe is in DC.”One of the goals of the stress test is to assess the impact on the macro economy, which, according to Valkenburg, will not be as great as the impact on individual members who “might have less money to buy a pension” on retirement.“This is important to be aware of, and, hopefully, we can help members to navigate through their lives and minimise the impact,” he said.The AAE issued a paper in February on decumulation in which it warned that the requirement to buy an annuity on the day of retirement might force people to buy at the wrong time.Valkenburg said the stress test might also highlight the problem of guarantees being much higher than the current interest rate. “Guarantees are very expensive, and they were given in times when stakeholders were not expecting a sudden change in the environment like we have seen in the past couple of years,” he said.Valkenburg expects guarantees to come down or be removed altogether in the wake of the stress tests, which he said would, in turn, highlight the problem of people having to work longer. The European Insurance and Occupational Pensions Authority (EIOPA) needs to “take another look” at using the holistic balance sheet (HBS) approach as a means of calculating capital requirements, according to Falco Valkenburg, chair of the Actuarial Association of Europe’s (AAE) pensions committee.Valkenburg said the HBS was “an interesting concept that should be explored further, maybe as part of pension funds’ risk management”, but he also stressed that the HBS concept was “quite new”.“Not even we at the AAE are fully convinced it will lead to something that can work in practice,” he said. EIOPA announced the details of its first stress test for occupational pension funds on Monday. last_img read more

Wellington captures consolation title in buzzer beating fashion (updated with stats)


first_imgMitchell8134644244 Zimmerman11000031 Wilson11001231 Helwig00000000 Snipes6122327168 Team total224871814236530 T. French24002269 Labette County Hentzen25000042 Dean14001233 Wellington Adams12120021 Team Total16455157106233 Shayland French is defending Erica Gartner in defensive sequence in 4th quarter, the more memorable sequence would come later.by Tracy McCue, Sumner Newscow — It was a crazy ending to an amazing season. It was an exclamation point to a wonderfully written novel. It was simply… stunning.A written description won’t do it justice. The video of the buzzer beater is below. Wellington had blown a seven point lead in less than a minute and had missed six consecutive free throws down the stretch. Labette County had the ball with less than 15 seconds tied 62-all in the third place game of the Class 4A Div. 1 game.Labette’s Erica Gartner was shooting from the right wing looking for the win. Shayland French would make a block, take the ball up court and lob it off to Lauryn Snipes, who would drive it down the north sidelines, and shoot an NBA style 3-pointer from the right side. It fell into the basket as the buzzer sounded. Wellington won a stunning 65-62 victory over Labette County for the state’s consolation prize.The Crusaders ended the season at 24-1 with a state trophy and a ton of memories too numerous to mention. The 2015-16 Lady Crusaders were history makers.“I’ve never been a part of something like that,” said Wellington head girls basketball coach Eric Adams.Snipes was asked to describe the last shot. Her response:It was just karma.While third-place state tournament games have been a source of debate whether or not if they should even be played, Lady Crusader fans and players are most certainly converts – especially after what transpired.The Crusaders state title aspirations ended Friday night with a 64-51 loss to Paola. But Saturday afternoon’s game more than made up for any sorrowful feelings. Keep the game!It was a wild affair against a very scrappy and disciplined Labette County team from southeast Kansas. Tristan Gegg, a 5-5 sophomore, is crazy good. Having scored 1,000 points already in her high school career so far, she scored 30 points against the Wellington defense including five 3-pointers.And in a crazy game of momentum changes, Labette had erased a 62-55 lead with 1:20 to play. Wellington went to the line and missed free throw after free throw, shooting 3 of 10 in the fourth quarter. The Grizzlies had used a Gegg 3-pointer and had scored on an errant Wellington inbounds pass thereafter.When Avery Rusk missed her second free throw, it was Labette looking for the last shot.But Wellington’s late collapse only came after a sensational comeback. It was Labette which looked as if it was going onto victory, leading 55-47 after Gegg made a steal and layup as Mitchell was called for her fourth foul. Both her and Snipes played their final quarter throughout with four fouls.But two Rusk free throws, a Snipes layup and a Rusk layup would narrow the margin to 55-53. Mitchell then hit a trey to give the Dukes their first lead in over 10 minutes. Snipes would hit a trey to make it 60-55. Then T. French nailed a deuce to make it 62-55.This game had more peaks and valleys than the Rocky Mountains. Both teams traded baskets in the first quarter as Mitchell scored 10 of the team’s first 14 points. Wellington would up the lead to 26-19 on a MeKenna Adams 3-pointer.But then Labette came back with nine straight and took a 28-27 lead into halftime.In the third quarter, the Grizzlies athleticism would take Wellington by surprise and Labette would build its lead to 49-41. Mitchell hit a trey to pull the Dukes within five. A Grizzly free throw made it 50-44 at the end of the third.This game was just getting started.State Tournament 3rd Place game: Scoring: FGMFGA3FGM3FGAFTMFTAPointsReb. Burk15001234 State Tournament 3rd Place game:  Gegg112251133309 Wellington1413201865 S. French36002284 Rusk110074760 Sorrell A.780011155 Follow us on Twitter. Labette County1216241062 Moore00000000 Gartner111040025 Sorrell C.14000023last_img read more