On October 7, 2022, the Financial Reporting Council (FRC) published revisions to its Actuarial Standard Technical Memorandum 1 (AS TM1) and accompanying guidance.

 

Under the draft Pensions Dashboards Regulations 2022, from October 1, 2023, trustees of occupational pension schemes providing money purchase benefits will be required to supply accrued and projected pension "value data" to dashboards using the methodology set out in AS TM1. The FRC’s changes aim to standardise assumptions on accumulation rate and the form of annuitisation at retirement.

 

The changes will be effective for all statutory money purchase illustrations (SMPIs) issued on or after October 1, 2023, and are intended to make such illustrations more consistent and reliable for DC member recipients.