Pensions - Articles - PPF consults on changes to actuarial assumptions


The PPF has launched a consultation on its proposals to change the actuarial assumptions under section 143 valuations (PPF assessment valuations) and section 179 valuations (PPF levy valuations).

 A recent review of the valuation assumptions showed they need updating to align with pricing in the bulk annuity market.

 The PPF is proposing several changes to bring these assumptions in line with the current market pricing:

 • to update the mortality assumptions by moving to the latest “S3” series mortality tables and to use the CMI 2019 mortality projections model
 • to change the discount rates for pensioners and non-pensioners post retirement
 • to amend the calculation for wind-up expenses and slightly reduce pensioner and non-pensioner benefit installation/payment expenses

 Lisa McCrory, PPF’s Chief Finance Officer and Chief Actuary said: “As part of a regular review, in December last year we held discussions with eight insurance companies about whether our current assumptions were dated and need reassessing.

 “Based on these discussions, we’re now consulting on our proposals, to find out whether our updated assumptions strike the right balance with the bulk annuity market. We want to invite stakeholders to share their views on our proposals which will help shape future actuarial assumptions.”

 The consultation document also covers changes to valuations carried out under sections 152, 156 and 158.

 The consultation ends at 5pm on Thursday 18 March 2021 and a summary of responses will be published on the PPF website.

 The changes for valuations are set to be introduced on or after 1 May 2021.

 View the consultation document here

 Please respond to the consultation online at https://www.ppf.co.uk/2021-consultation-valuation-assumptions or email responses to assumptions@ppf.co.uk 

Back to Index


Similar News to this Story

Wish list for the occupational pensions industry in 2025
As one year closes and another begins, it's an opportune moment to set our sights on the future. The UK occupational pensions industry faces nume
PSIG announces outcome of Consultation
The Pensions Scams Industry Group (PSIG), which was established in 2014 to help protect pension scheme members from scams, today announced the feedbac
Transfer values fell to a 12 month low during November
XPS Group’s Transfer Value Index reached a 12-month low, dropping to £151,000 during November 2024 before then recovering to its previous month-end po

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.