FRC: Amendments to actuarial standards in relation to pension incentive exercises

14 November 2012

The FRC has today extended the scope of its technical actuarial standards (TASs) to include actuarial work on pension incentive exercises.

The FRC’s move helps to address concerns that members of defined benefit schemes may be misled by financial incentives being offered into giving valuable pension benefits.

Commenting on the announcement, Olivia Dickson, Chairman of the FRC’s Actuarial Council, said: “Members who are offered incentives to change their benefits face difficult and complex choices. It is important that members are provided with clear, reliable and sufficient information so that they can take informed decisions. Actuarial work is carried out at various stages of these incentive exercises and can influence the terms of incentives offered and the communications to members. In order to provide greater assurance of the quality of actuarial information provided, the FRC has decided to bring incentive exercises into the scope of the Pensions TAS.”

Press release

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