FRC consults on proposed changes to AS TM1
News types: Consultation Announcement
Published: 26 October 2026
The Financial Reporting Council (FRC) today published a consultation on proposed changes to Actuarial Standard Technical Memorandum 1 (AS TM1) in response to changes in market conditions.
Appropriate assumptions play a crucial role in providing pension scheme members with consistent and reliable pension illustrations. The FRC conducts an annual review of the appropriateness of the assumptions set out in AS TM1 to ensure they remain fit for purpose. Following this year’s review, the FRC is proposing to increase some of the accumulation rate assumptions used in the calculation of statutory illustrations for defined contribution pensions, given the sustained increase in real gilt yields.
No changes are proposed to other assumptions or the methodology set out in ASTM1 v5.2.
Stakeholders are invited to provide feedback by 27 November 2026.
Results of the consultation are expected to be published by 15 February 2026.
In addition, the FRC is carrying out a post implementation review of AS TM1 to ensure the standard continues to be fit for purpose. The wider review covers areas beyond this annual review of the accumulation rate assumptions and volatility group boundaries and follows a separate timeline. To support the post implementation review, the FRC will shortly publish a call for feedback to seek comprehensive feedback on the standard.