News
The Pensions Regulator has announced that it’s proposing to start monitoring schemes' mortality assumptions in the context of Recovery Plans submitted to it. The Regulator feels that many trustees aren’t adopting strong enough assumptions so are 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.
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 12 May 2008
Your scheme actuary will be happy to discuss this issue with you if you’d like further details.
You can read the full press release here
