On May 9, UK FRC consulted on revised pension actuarial standards.
UK FRC published a consultation to revise Technical Actuarial Standard 300 (TAS 300) and introduce Technical Actuarial Standard 310 (TAS 310), as in relation to pensions.
Consultation Basis
The revision is aimed at ensuring that the actuarial standards in relation to pensions remain relevant and reflect all of the developments within the wider pension industry.
Proposed revisions to TAS 300 include requirements for advice on setting actuarial factors and for bulk transfer exercises including buyout transactions with an insurer.
UK FRC has also proposed to introduce TAS 310, which sets out standards for actuarial work in relation to collective money purchase pension schemes to reflect framework for this new type of pension scheme which has been introduced via new legislation.
Effectiveness
The consultation on the revised standards is now open for feedback until Aug. 4, 2023.
May 16, 2023 Webinar
On May 16, 2023, UK FRC announced upcoming webinar on revision to actuarial standards in the pensions sector, planned for May 31, 2023.
Aim to provide insight into proposals, implications, what they mean for the industry.
Dec. 2023 TAS 300 Published
On Dec. 11, 2023, UK FRC published version 2.0 of Technical Actuarial Standard 300: Pensions (TAS 300), including revisions to ensure it remains appropriate and reflects developments in pension industry, including buyout activity and pension superfunds.
Revised standard includes requirements for advice on setting actuarial factors and on bulk transfer exercises, including buyouts with insurers and on transfers to superfunds.
UK FRC’s Executive Director of Regulatory Standards, Mark Babington, commented defined benefit pension schemes have a significant potential to support economic growth through greater financial investment within the current productive economy.
High quality actuarial work will support a well-functioning marketplace for all the endgame solutions, such as the insured buyouts and relevant transfers to superfunds.
Revisions to TAS 300 reflect UK FRC’s commitment to promoting high-quality actuarial work in this sector and to increase the public confidence in this market as it develops.
UK FRC invited stakeholders to a webinar to discuss revised standard on Jan. 11, 2024.
UK FRC is also considering feedback received in relation to TAS 310, which sets out the requirements to collective money purchase pension schemes to reflect new framework.
It will issue a separate feedback statement and an impact assessment in due course.
May 2024 TAS 310 and Feedback Published
On May 24, 2024, UK FRC published version 1.0 of Technical Actuarial Standard 310: Collective Money Purchase Pensions (TAS 310), including assumptions and modeling.
UK FRC also published the feedback statement and impact assessment report in which it received 12 written responses to the consultation relating to TAS 310 version 1.0.
The responses were mainly supportive of TAS 310's policy direction, and respondents agreed that a new TAS on Collective Money Purchase (CMP) pensions was needed.
Respondents also felt that this should mean setting a high standard for advice.
There was also broad support regarding proposed timing for introducing TAS 310.
Respondents supported proposed provisions relating to assumptions, decision not to define soundness in the standard, and information in valuation reports (Appendix A).
UK FRC advise CMP is a new area of actuarial work, and best practice is still emerging.
In the feedback stakeholders raised concerns in a number of areas based on practical experience of practitioners, and UK FRC has made several amendments accordingly.
This was to ensure practitioners are comfortable that they can comply with TAS 310.
TAS 310 v1.0 applies to technical actuarial work in scope and completed on or after Sep. 30, 2024, and it is also important to be guided by the reliability objective.
Regulators
UK FRC
Entity Types
Auditor; Pension
Reference
TAS 310 v1.0. PR, 5/24/2024; TAS 300 v2.0, PR 12/11/2023; PR 5/16/2023; CP, PR 5/9/2023; TAS 300; TAS 310
