Pensions - Articles - PwC on consultation for smoothing pensions scheme rates

 The Department for Work and Pensions (DWP) will consult on whether to allow companies undergoing pension scheme valuation in 2013 or later to smooth asset and liability values.

 Raj Mody, head of pensions advisory at PwC, said:

 “Allowing the Pensions Regulator to smooth or put a floor on the pension scheme discount rates used to value pension liabilities would not be necessary or even that helpful. This would just mask the underlying problem, risk leading to ill-informed decision-making and could store up future issues for pension schemes and companies.

 "There are smarter and more contemporary techniques for dealing with the current low-yield environment, which allow companies to achieve more realistic assessments of their deficit and therefore reduce short-term cash burdens, as well as enhancing returns on their assets.”