The FRC published a fast-track consultation paper on proposed amendments to Actuarial Standard Technical Memorandum 1, to reflect changes introduced by new disclosure regulations which affect Statutory Money Purchase Illustrations (SMPIs). The consultation period ends on 13 December, 2013.
The amendments to the disclosure regulations and AS TM1 will mean that, from 6 April 2014, pension providers can present more personalised illustrations to pension scheme members in their annual statements.
The FRC’s consultation follows regulations published on 31 October 2013 which consolidate and amend some of the requirements for disclosure of information to pension scheme members introducing additional options. The amendments include changes to the information shown in SMPIs. Accordingly, the FRC proposes changes to its standard AS TM1 to enable providers to present illustrations which allow:
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for cash lump sums to be taken out prior to the calculation of the illustrated pension;
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varying percentages of dependants’ pension to be assumed; and
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different levels of pension increases to be assumed.
Press release
Exposure draft
© FRC
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