Good Practice when Choosing Assumptions for Defined Benefit Pension Schemes - ACT Response

The ACT appreciates the need for the Pensions Regulator (PR) to ensure scheme valuations are undertaken with appropriate parameters. With regard to mortality, the ACT is supportive of guidance which is clear and of sufficient robustness in respect of individual schemes. In broad terms therefore, the ACT feels the consultation will allow pension trustees to address these issues with their professional advisors in their schemes.

However we are concerned that there is regulatory inconsistency between the Pensions Regulator and The Board of the Pension Protection Fund (PPF) in terms of the actual mortality assumptions recommended by each body.