NAPF welcomes regulator's decision to delay changes on mortality assumptions
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Tuesday, 22, Jul 2008 12:00
The National Association of Pension Funds (NAPF) has welcomed the Pensions Regulator’s (tPR) announcement that September 2008, not March 2007, will now be the date from which it expects pension scheme valuations to show greater recognition of longevity improvements.
Nigel Peaple, NAPF Director of Policy, said:
“We welcome the decision to avoid the retrospective application of changes to the Regulator’s expectations in this area. It would have been costly for trustees of pension schemes to revise valuation mortality assumptions where they had already started work on funding plans. This was one of the key issues we raised so we’re pleased that the Regulator is listening to its stakeholders.
“It is still important though that the absence of the long cohort mortality improvement assumption is not used as a ‘trigger’ for further regulatory scrutiny, as we have previously argued. We believe doing so runs counter to the principle of scheme specific funding.”
The NAPF in its submission1 to tPR’s consultation on mortality assumptions raised a number of concerns. These included the adoption of the long cohort projection for the ‘mortality
improvement’ assumption as a ‘trigger’ for further scrutiny. The NAPF believes that the long cohort would then be seen to be a minimum standard by trustees, even though it is not appropriate for all schemes.
ENDS
Notes to Editors
1 The NAPF response is available here.
The accompanying press release is also available here.
The National Association of Pension Funds Limited
The NAPF is the leading voice of workplace pension provision in the UK. The NAPF represents over 2000 workplace pension schemes providing pensions for over 10 million working people. Our member schemes hold assets of around £800 billion and account for approximately one fifth of investment in the UK stock market.
Further Information
Journalists requiring further information, please contact
Mark Brooks 020 7808 1312 mark.brooks@napf.co.uk 07917 506683
Ruth Wharram 020 7808 1345 ruth.wharram@napf.co.uk
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