The Pensions Regulator (TPR) has published the consultation report to its earlier consultation on good practice when selecting mortality assumptions for funding purposes. TPR has also published the accompanying final guidance.
One of the proposals contained in the consultation document was a new stand-alone trigger for possible regulatory intervention on the mortality improvement assumptions. The consultation report summarises the various responses to the consultation received by TPR and includes comments from TPR.
In the consultation report TPR comments that the final guidance treats mortality assumptions as a “secondary trigger” rather than the proposed “primary trigger”. Under this approach TPR will scrutinise morality only if one of the existing triggers escalates a case for further scrutiny.
TPR in the consultation report also restates its announcement on 21 July 2008 that it is delaying its new regulator approach until the start of the next defined benefit scheme valuation cycle. TPR says that this will cover valuation with effective dates from 22 September 2008.