The complete set of answers to FAQs
(version 1, May 2012) is available as a single PDF, or you can download the answers to specific questions below.
1.1 - To what extent can practitioners take account of the expertise of users?
1.2 - If complying with a TAS would involve a disproportionate amount of work, is this work necessary?
1.3 - What is actuarial work?
1.4 - What is the difference between a measure and a method?
1.5 - Why do users need to know whether an exercise is a valuation exercise, a planning exercise or some other type of exercise?
1.6 - How will a practitioner know that a piece of work complies with the TASs at the time it is delivered?
1.7 - Which regulatory body decides whether work complies with the TASs?
1.8 - Who is responsible for complying with TASs?
1.9 - What counts as a decision by users? What about conditional decisions? What happens if the decision has already been taken (e.g. reports of record and certificates)?
1.10 - How can practitioners comply with the TASs when some assumptions or results on which they rely have been produced by a third party and are not subject to the TASs?
1.11 - Am I required to include information that I consider should not influence users' decisions, if I suspect that a user might consider it relevant and might in fact be influenced by it?
2.1 - Is it necessary to produce lots of formal reports in order to comply with TAS R?
2.2 - Must an aggregate report be a single document?
2.3 - Does an aggregate report have to list the component reports that make it up?
2.4 - Users are likely to find the term "aggregate report" confusing. Is it necessary to use this term?
2.5 - Can a minute of a meeting be a component or aggregate report?
2.6 - If users make a decision on a matter, and subsequently request more information because they wish to revise the decision, does the revised decision need to be preceded by an aggregate report?
2.7 - Why should practitioners have to define "prudent", when it's not defined in legislation or regulation?
2.8 - If a table of lapse rates or other decrements is based on past scheme experience does this count as a set of probabilities (which therefore need to be explained under TAS R) or as data?
3.1 - What counts as data?
4.1 - What does "neutral" mean?
4.2 - Is it always necessary to produce a neutral estimate?
4.3 - Is it necessary to go back and document and test all existing models?
4.4 - What are the requirements for models that I use which are developed by someone else?
4.5 - What is meant by the requirements regarding suitability of models?
5. Pensions work
5.1 - Is the projected unit credit method a measure of pension liabilities, or a method?
5.2 - Won't it confuse people to be told that a pension scheme valuation exercise is really a planning exercise, not a valuation exercise?
5.3 - The final report to the trustees on a Scheme Funding exercise is available to pension scheme members. Do they count as users of that report?
5.4 - Does actuarial work that supports compliance with FRS17 constitute Reserved Work?
5.5 - Does the provision of deficit reduction certificates constitute Reserved Work?
5.6 - What are an actuary's obligations when undertaking actuarial work concerning statutory money purchase illustrations for pension scheme members?
5.7 - When producing Statutory Money Purchase Illustrations in line with version 2.0 of TM1, how should the male and female mortality assumptions be blended?
6. Insurance Work
6.1 - From 1 December 2010 it's possible to comply with GN12 by complying with the TASs. What does this mean if the work is outside the scope of the TASs?
6.2 - Do I have to provide an estimate of the technical provisions at the end of the following year when I'm calculating them at the year-end?
6.3 - Does validation work on an internal model used to calculate the Solvency Capital Requirement (SCR) in accordance with Solvency II fall within the scope of the TASs?
7.1 - Does a review of pension scheme factors fall within scope of the Transformations TAS?