Responses to Consultation on Statutory Money Purchase Illustration Rules
News types: Codes and Standards Announcements, Consultation Announcement, Response
Published: 28 October 2010
BAS PN 35
In March the FRC’s Board for Actuarial Standards (BAS) published a consultation paper on possible changes to the rules governing how money purchase pension scheme projections of future fund values are calculated. These rules apply to the statutory annual statements for scheme members. The BAS has today published an analysis of responses to the consultation.
Having considered the responses the BAS has decided to make no immediate changes to the rules, and to engage in further discussion with providers and other stakeholders. This will enable us to work with the FSA, to ensure consistency is maintained with its rules for point of sale projections, and with the DWP, to ensure that the rules are in line with its policy intent. It is important that changes to the rules are not too frequent, given the resulting costs.
The analysis of responses is available at: TM1: Statutory Illustrations of Money Purchase Benefits: Analysis of responses to consultation paper (PDF).
Notes to Editors
In March the FRC’s Board for Actuarial Standards (BAS) published a consultation paper on possible changes to the rules governing how money purchase pension scheme projections of future fund values are calculated. These rules apply to the statutory annual statements for scheme members. The BAS has today published an analysis of responses to the consultation.
Having considered the responses the BAS has decided to make no immediate changes to the rules, and to engage in further discussion with providers and other stakeholders. This will enable us to work with the FSA, to ensure consistency is maintained with its rules for point of sale projections, and with the DWP, to ensure that the rules are in line with its policy intent. It is important that changes to the rules are not too frequent, given the resulting costs.
The analysis of responses is available at: TM1: Statutory Illustrations of Money Purchase Benefits: Analysis of responses to consultation paper (PDF).
Notes to Editors
- The Financial Reporting Council (FRC) is the UK’s independent regulator responsible for promoting high quality corporate governance and reporting to foster investment.
- The Board for Actuarial Standards has a primary objective of promoting competence and transparency of actuarial practice by establishing and improving actuarial technical standards and ensuring that they are coherent, consistent and comprehensive.
- Since 6 April 2003, members of certain money purchase pension arrangements must be provided with Statutory Money Purchase Illustrations (SMPIs). SMPIs are produced in accordance with Technical Memorandum 1: Statutory Money Purchase Illustrations(TM1), which is issued by the Board for Actuarial Standards (BAS). The BAS reviews TM1 regularly.
Document created under a former FRC operating body.