FRC Consults on Actuarial Standards for Pension Incentive Exercises
The FRC’s Board for Actuarial Standards (BAS) has published a consultation paper which proposes to bring actuarial work on pension incentive exercises into the scope of the FRC’s technical actuarial standards (TASs).
The consultation also considers whether the TASs should include specific principles to be followed when providing actuarial advice on incentive exercises.
The FRC’s move follows the publication of a new Code of Practice for incentive exercises developed by a DWP-sponsored industry working group.
Commenting on the announcement, Jim Sutcliffe, Chairman of the BAS, said: “Actuaries frequently advise parties offering incentive exercises. These parties need to be aware of the risks and uncertainties to pensions of any proposals that are put to members. The TASs already provide a good framework which can be used for actuarial input to these exercises. We consider that bringing actuarial work on incentive exercises into the scope of the TASs will support wider moves to improve the information, safeguards and outcomes for scheme members.”