FRC confirms AS TM1 assumptions unchanged following annual review
News types: Codes and Standards Announcements
Published: 6 February 2026
Following a consultation, the Financial Reporting Council (FRC) has today confirmed that no changes will be made to the actuarial assumptions in Actuarial Standard Technical Memorandum 1 (AS TM1), a key actuarial standard that supports actuarial practitioners to calculate Statutory Money Purchase Illustrations consistently.
AS TM1 v5.2, published today and effective from 6 April 2026, contains only minor wording amendments relating to fund volatility calculation dates to clarify the FRC’s policy intention.
The FRC conducts annual reviews of AS TM1 to ensure its assumptions remain appropriate for current market conditions. After proposing no significant amendments to the standard in November 2025, the consultation garnered wide agreement from stakeholders and the FRC has proceeded with its proposed minor wording amendments.
Pension providers will continue to use the previous actuarial assumptions set out by the FRC, which are used to illustrate the potential value of individual defined contribution pension schemes - of which more than 50 million are produced each year.
The FRC thanks stakeholders for their input to the annual reviews of AS TM1 and looks forward to continued engagement.