IFoA SP4 case studies
IFoA SP4 · Put your knowledge to work in context.
SP4 (Specialist Principles: Pensions) is one of the Institute and Faculty of Actuaries' Specialist Principles subjects, taken after the Core Principles stage and typically alongside or before a Specialist Advanced subject. It suits actuaries working in, or moving into, occupational and individual pension provision: scheme actuaries, consultants, in-house pensions managers, investment and risk specialists, and those involved in accounting disclosures or scheme restructuring. The IFoA SP4 case studies are 5 cases and about 4,929 words.
1Thornbury Engineering: Switching Past-Service Indexation from RPI to CPI
Thornbury Engineering Pension Scheme is a UK defined benefit scheme with 1,850 members: 300 active, 900 deferred and 650 pensioners. It provides 1/60th final salary with a normal retirement age of 65, and pensions in payment and deferred pensions are increased annually by RPI, capped at 5%.
1,087 words, about 5 min2Harlow Logistics: A Weak Covenant and a Nine-Year Recovery Plan
Harlow Logistics Pension Scheme is a UK DB scheme with 3,200 members and assets of £380m. The 31 March 2025 valuation shows technical provisions of £422m, a deficit of £42m; the buy-out deficit is £95m.
981 words, about 5 min3Northgate: Collateral Calls on a Leveraged LDI Portfolio
Northgate Pension Scheme has £2.1bn of DB liabilities and £1.9bn of assets. It hedges 65% of interest-rate risk through a leveraged LDI portfolio with £700m notional exposure, financed by three-times-leveraged gilt repo.
920 words, about 5 min4Brightwater Group: Recognising a DB Surplus Under IAS 19
Brightwater Group plc sponsors the Brightwater Pension Scheme, a UK DB scheme with IAS 19 obligations of £640m and assets of £700m at 31 December 2025. The discount rate is 4.8%, and the scheme has been closed to future accrual since 2020.
1,008 words, about 5 min5Amina's Retirement Options: Drawdown, Annuity and an Adviser's Incentive
Amina is 64 and plans to retire at 65. She has a DC pot of £320,000, a DB pension of £12,000 a year from a former employer, and a state pension forecast of £10,800 a year from age 67.
933 words, about 5 min