Pensions Longevity

Pensions Longevity

The Pensions Regulator’s proposal of a retrospective change to the way longevity is treated in the scheme funding regime has been halted.  However, the industry is still anxious to hear what shape the changes will take when they do finally come in.  The regulator had planned to introduce changes which applied to valuations due from March 2007, but after a consultation that ran from February to May this year, the regulator changed its mind and announced that the changes would not apply until the beginning of the next defined benefit scheme valuation cycle starting this month.  This will impact valuations and follow-up recovery plans due from December 2009.

Chairman, of the regulator, David Norgrove, said the consultation had been very useful and the regulator would “fully consider” all of the responses before announcing the final version of its new approach later in the summer.

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