The UK Financial Reporting Council (FRC) revised Technical Actuarial Standard 310: Collective Money Purchase Pensions (TAS 310) to support decision-makers considering how fairness can be achieved across different groups of members in collective defined contribution (CDC) pension schemes.
The targeted amendments follow recent government legislation to enable the operation of multiple-employer CDC pension schemes, a news release said.
“To manage fairness between different employers and groups of members, these schemes are required to achieve ‘actuarial equivalence’ between pension benefits and contributions paid,” the release said.
The FRC also published guidance to support practitioners carrying out work relating to actuarial equivalence in a proportionate manner, the release said. Throughout the regulator’s consultation, stakeholders demonstrated broad support for the proposals, including the addition of requirements around actuarial equivalence, which provides actuaries with an appropriate and up-to-date framework for working with this new type of scheme.
The standard will be effective for technical actuarial work completed on or after 31 July.
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