Page 98 - Pharmacy Appeals 1/4/04 to 31/3/05

74 Corporate governance report

Remuneration and Terms of Service Committee
The Remuneration and Terms of Service Committee
I, Martin Clarke, am Government Actuary and a
is a non-executive committee, the role of which
Fellow of the Institute and Faculty of Actuaries.
includes the determination of the remuneration,
In my opinion, the IBNR provisions for NPIS
benefits and terms of service of all posts covered
Resolution as at 31 March 2022 to be included
by the Pay Framework for Executive and Senior
in NPIS Resolution's report and accounts have
Managers (ESM). All meetings were quorate.
been calculated using an appropriate actuarial
methodology and assumptions which are within
People Committee
a reasonable range, given the purpose of the
This Committee was established in 2021/22 to support calculation and taking into account discussions
the Board and the Accounting Officer by reviewing
held with the working groups and the NPIS
the comprehensiveness and reliability of assurances in Resolution's Reserving and Pricing Committee.
relation to its people strategies and activities. The first The actuarial assumptions were selected on a best
meeting of this committee was held in March 2022. estimate basis, with no explicit adjustment for
risk and uncertainty. I have calculated the IBNR
Reserving and Pricing Committee
provisions to be £64,288 million for all schemes
I chair the Reserving and Pricing Committee (RPC) combined as at 31 March 2022 using the method
with membership comprised of the Director of and assumptions selected by NPIS Resolution. This
Finance and Corporate Planning, Director of Claims, opinion statement should be considered in the
Plead of Reserving and Pricing and a non-executive context of my advice to the Reserving and Pricing
director. From January 2022 the committee's Committee. There are a number of uncertainties
membership has been augmented by an independent underlying the IBNR provisions. My advice to the
member. The committee is attended by our actuarial Reserving and Pricing Committee and Note 7 to
advisers, the Government Actuary's Department. NPIS Resolution's Annual report and accounts
describe this uncertainty and quantify the sensitivity
The Committee meets regularly in order to:
of the IBNR provisions to key assumptions. This
• set the methodology and assumptions opinion does not negate the fact that the future
for calculating the value of the provisions cash flows will not develop exactly as projected and
for the statutory financial accounts; may, in fact, vary significantly from the projections.

• develop cash flow estimates to inform
budgetary requirements and set contribution
levels for indemnity scheme members; and
• ensure that the framework for assurance for models
used for calculating business critical information is
applied in line with the Macpherson recommendations.
Key matters considered in 2021/22 included:

The results of the work undertaken by RPC on
calculating the key estimates for the accounts in
respect of the provision are included in the Annual
report and accounts, which are presented to ARC
and the Board for consideration. This supports me
in the process to sign the accounts as a true and
fair view of the year's activities. The actuarial adviser
has provided an opinion on the methodology and
assumptions used to calculate a key estimate in the
accounts, the 'incurred but not reported' provision.