AS TM1 Assumptions to remain unchanged prior to implementation of AS TM1 v5.0
News types: Codes and Standards Announcements
Published: 19 December 2022
Actuarial Standard Technical Memorandum 1 (AS TM1) sets out the required approach for producing the annual Statutory Money Purchase Illustrations (SMPIs) received by people saving for retirement in defined contribution pension plans. Each year there are over 40 million SMPIs produced in respect of these defined contribution plans.
The FRC conducts an annual review of the appropriateness of assumptions used in AS TM1. We have carried out a review of whether the assumptions in AS TM1 v4.2 remain appropriate for the period from 6 April 2023 until the adoption of AS TM1 v5.0 from 1 October 2023.
The FRC carried out an extensive consultation on the content of AS TM1 v5.0, which was published in October 2022 and will be effective for statements issued on or after 1 October 2023. AS TM1 v5.0 will increase the consistency of approach in production of SMPIs between pension providers. We do not see a significant benefit for users from requiring any changes to be made to existing v4.2 of AS TM1 prior to implementation of AS TM1 v5.0 in October 2023.
No changes will be made, therefore, to the assumptions, and the extant version (v4.2) will remain in force for SMPIs produced between 6 April 2023 and 1 October 2023.
For more information, please contact us .
The FRC conducts an annual review of the appropriateness of assumptions used in AS TM1. We have carried out a review of whether the assumptions in AS TM1 v4.2 remain appropriate for the period from 6 April 2023 until the adoption of AS TM1 v5.0 from 1 October 2023.
The FRC carried out an extensive consultation on the content of AS TM1 v5.0, which was published in October 2022 and will be effective for statements issued on or after 1 October 2023. AS TM1 v5.0 will increase the consistency of approach in production of SMPIs between pension providers. We do not see a significant benefit for users from requiring any changes to be made to existing v4.2 of AS TM1 prior to implementation of AS TM1 v5.0 in October 2023.
No changes will be made, therefore, to the assumptions, and the extant version (v4.2) will remain in force for SMPIs produced between 6 April 2023 and 1 October 2023.
For more information, please contact us .