Article summary
The Financial Reporting Council (FRC) has announced the launch of a consultation on the Actuarial Standard Technical Memorandum 1 (AS TM1) which specifies the assumptions and methods to be used in statutory illustrations of money purchase/defined contribution pensions (SMPIs). Following last year’s review of market conditions at 30 September 2023, the FRC had consulted on changes to the accumulation rate assumptions in AS TM1. Following that consultation, the FRC issued a revised AS TM1 v5.1 on 9 February 2024 effective for SMPIs based on calculations performed on or after 6 April 2024. Now based on a review of market conditions as at 30 September 2024, the FRC are proposing to maintain the current standard and make no amendments to AS TM1 v5.1 as there has been minimal changes in market volatility and return expectations since the previous review. Consequently, the FRC are proposing to maintain AS TM1 version 5.1 for...
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