AS TM1 assumptions to remain unchanged
News types: Codes and Standards Announcements, Consultation Announcement
Published: 14 December 2021
The Financial Reporting Council (FRC) has conducted a review of the assumptions set within Actuarial Standard Technical Memorandum 1 (AS TM1) that are mandated for use in the annual Statutory Money Purchase Illustrations (SMPIs) received by people saving for retirement in defined contribution pension plans. Each year there are over 40 million SMPIs produced in respect of these defined contribution plans.
The FRC concluded that no change will be made to the assumptions at the present time and that the current version (v4.2) will remain in force for SMPIs produced in the year beginning 6 April 2022. The main reason for this conclusion is that the existing assumptions remain within a reasonable range so that change is not required urgently, and there is value in consistency from year to year. While the Continuous Mortality Investigation has published a more up to date mortality table than used in AS TM1, the differences are not significant enough to force us to update immediately.
The FRC is in the process of considering the continued appropriateness of the assumptions and methods specified in AS TM1 in anticipation of the commencement of pensions dashboards and have therefore deferred other potential areas of adjustments to be considered at the same time. The FRC will, if necessary, consult on any revision to AS TM1 in due course.
As such the current version of AS TM1 (version 4.2) will remain in force until further notice.
For more information, please contact [email protected] .
The FRC concluded that no change will be made to the assumptions at the present time and that the current version (v4.2) will remain in force for SMPIs produced in the year beginning 6 April 2022. The main reason for this conclusion is that the existing assumptions remain within a reasonable range so that change is not required urgently, and there is value in consistency from year to year. While the Continuous Mortality Investigation has published a more up to date mortality table than used in AS TM1, the differences are not significant enough to force us to update immediately.
The FRC is in the process of considering the continued appropriateness of the assumptions and methods specified in AS TM1 in anticipation of the commencement of pensions dashboards and have therefore deferred other potential areas of adjustments to be considered at the same time. The FRC will, if necessary, consult on any revision to AS TM1 in due course.
As such the current version of AS TM1 (version 4.2) will remain in force until further notice.
For more information, please contact [email protected] .