The Financial Reporting Council has extended the scope of its technical actuarial standards to include actuarial work on pension incentive exercises. The intention behind this move is to help to address concerns that members of defined benefit schemes may be misled into giving up valuable pension benefits as a result of financial incentives being offered as part of a pension incentive exercise.

This revised position follows the introduction of the Industry Working Group's voluntary code on incentive exercises that we reported on in our June 2012 UK Pensions Update.