Pensions - Articles - FRC to consult on Actuarial Standards for Pension Incentive

 The FRC’s Board for Actuarial Standards (BAS) has announced that the FRC will consult on bringing actuarial work on pension incentive exercises into the scope of its technical actuarial standards (TASs). The consultation will also consider whether the TASs should include specific principles to be followed when providing actuarial advice on incentive exercises.

 The FRC’s move is one of several initiatives being undertaken by regulators and industry groups in order to address concerns expressed by the Pensions Minister, Steve Webb, that members of defined benefit schemes may be overly influenced by financial incentives being offered, without appreciating the value of the benefits they are giving up.

 Commenting on the announcement, Jim Sutcliffe, Chairman of the BAS, said:

 “Actuaries may not advise scheme members directly but they frequently advise the other parties involved, who need to be aware of the risks and uncertainties to future pension benefits of any proposals that are put to members. The TASs already provide a good framework which might be used for such advice. Our consultation will explore whether, in conjunction with proposals by other parties, further measures should be taken to support the provision of better information, safeguards and outcomes for scheme members.”