The FRC’s Board for Actuarial Standards (BAS) has today published its draft pensions standard.

This new standard will ensure that pension trustees can rely on the information supplied by their advisors, and understand its limitations. It places the onus on actuarial advisors to check their data, use reasonable assumptions and explain the uncertainty around any figures. The information supplied will have to be understandable to users, and – in the case of the final report – to pension scheme members.

Commenting on the draft standard, Jim Sutcliffe, Chairman of the BAS, said:

“Recent volatility of investment returns, together with the increase in life expectancy, poses challenges to trustees and others involved in running pension schemes. They need accurate, high quality, clearly presented actuarial information to understand the risks they face and the implications of their decisions. The pensions standard will set a new benchmark in ensuring that users receive the actuarial information they need to make the best decisions.”

The consultation period for the exposure draft ends on 21 May 2010. Copies can be downloaded from the BAS website at http://www.frc.org.uk/bas/publications/pub2233.html. 
 

1. The Financial Reporting Council (FRC) is the UK’s independent regulator responsible for promoting confidence in corporate reporting and governance. Its functions are exercised principally by its operating bodies (the Accounting Standards Board, the Auditing Practices Board, the Board for Actuarial Standards, the Financial Reporting Review Panel, the Professional Oversight Board and the Accountancy and Actuarial Discipline Board) and by the FRC Board. The Committee on Corporate Governance assists the Board in its work on corporate governance.
2. The Board for Actuarial Standards has a primary objective of promoting competence and transparency of actuarial practice by establishing and improving actuarial technical standards and ensuring that they are coherent, consistent and comprehensive.
3. All media enquiries should be addressed to Louise Pryor, Director of the Board for Actuarial Standards, 020 7492 2328 or email at l.pryor@frc.org.uk.