News
Regulator’s intentions on longevity
The Pensions Regulator has announced that they are proposing to start monitoring schemes' mortality assumptions in the context of Recovery Plans submitted to them. They feel that many trustees are not adopting strong enough assumptions and are therefore underestimating the cost of pensions as people are living longer. In technical terms any mortality improvement assumptions weaker than long cohort will likely attract further scrutiny.
Note these proposals
- will apply to Recovery Plans based on valuations with effective dates from March 2007
- are subject to consultation within the pensions industry for 12 weeks ending on 12th May 2008
Your scheme actuary will be happy to discuss this issue with you if you would like further details.
For further information a link to the full press release is given below
http://www.thepensionsregulator.gov.uk/mediaCentre/pressReleases/pn08/PN08-03.aspx
