FRC updates pension communications standard

News types: Codes and Standards Announcements

Published: 16 December 2014

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The Financial Reporting Council (FRC) has today published a revised version of Actuarial Standard Technical Memorandum 1 (AS TM1) to reflect the implementation of automatic enrolment, legislation on same-sex marriage and to enable pension providers to more effectively take account of the impact of guaranteed annuity terms. AS TM1 sets out the basis on which annual statutory money purchase illustrations (SMPIs) should be determined. Over 18m SMPIs are sent to individuals annually providing information on the potential size of their pensions.

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The revised standard is effective from 6 April 2015.


Notes to editors:

  1. The FRC is responsible for promoting high quality corporate governance and reporting to foster investment. We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work. We represent UK interests in international standard-setting. We also monitor and take action to promote the quality of corporate reporting and auditing. We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.

  2. 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 the Disclosure Regulations issued by the Department for Work and Pensions. Actuarial Standard Technical Memorandum 1: Statutory Money Purchase Illustrations (AS TM1), which is issued by the FRC, sets out the methods and assumptions to be used in producing SMPIs. The FRC reviews AS TM1 regularly.

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