Actuarial Standard Technical Memorandum 1 survey results

News types: Feedback Statement

Published: 23 October 2018

Legislation requires providers to issue a Statutory Money Purchase Illustration (SMPI) in respect of each defined contribution pension policy or arrangement to each policy holder or scheme member.  The Financial Reporting Council has responsibility for setting the assumptions and maintaining the framework within which these illustrations of projected retirement income are made.

Since 2013 the FRC has undertaken an annual survey of the accumulation rates used by providers to make the projections of funds to retirement.  We do this to check market consistency with the underlying principles of the actuarial standard that sets the framework (AS TM1).

In 2018 we received responses from 21 providers who collectively issue over 30 million SMPIs.  Approximately 57% of these statements were issued to individuals with contract-based arrangements.

The results showed that accumulation rates use for 2018 illustrations were broadly similar overall to those used in 2017 except for corporate bond growth assumptions where there was modest movement in both directions.

More details can be seen in the survey report . (PDF)

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