FRC consults on proposed changes to Actuarial Standard Technical Memorandum 1
News types: Codes and Standards Announcements, Policies and Responsibilities, Consultation Announcement
Published: 3 November 2023
The Financial Reporting Council (FRC) has today published a consultation paper on proposed changes to the Actuarial Standard Technical Memorandum 1 (AS TM1) (and its Annex: Exposure Draft of version 5.0 of TM1) to reflect the changes in the market conditions and outlook.
The FRC is responsible for maintaining, and issuing Actuarial Standard Technical Memorandum 1 (“AS TM1”) which specifies the assumptions and methods to be used in illustrations of money purchase/defined contribution (DC) pensions.
The FRC annually reviews the appropriateness of the assumptions set out in AS TM1 to ensure they remain fit for purpose. Following the review, the FRC is proposing to increase accumulation rate assumptions in the calculation of the pension illustrations given changes in market conditions. No changes are proposed to other assumptions or methodology set out in ASTM1 v5.0.
The consultation will last from 3 November 2023 to 4 December 2023 and the FRC expects to publish the results of the consultation by 15 February 2024, with the revised standard coming into effect from 6 April 2024.