FRC dashboards standard to remain unaltered until 2024

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FRC dashboards standard to remain unaltered until 2024
(Pexels/ Thirdman)

Dashboard projected assumptions, which came into force last year, will remain unaltered until March 2024, the Financial Reporting Council has announced.

The FRC made changes to the Actuarial Standard Technical Memorandum 1 in 2022 in preparation for the pensions dashboards.

This standard governs the assumptions and methods used to compile statutory money purchase illustrations of defined contribution pensions.

Since the dashboards are initially planned for presentation purposes only, and not to make pension projections, providers and schemes will be expected to provide an estimated retirement income figure for their members, which relies on projected pot size.

The regulator conducted an annual review of the assumptions used under the standard and has determined that no changes are currently needed.

The review goal was to ensure the accumulation rates and volatility group boundaries remain appropriate for the near future, the FRC said.

“Although the market conditions and outlook have changed since the previous review was conducted, considerable uncertainty remains,” it said, adding that the standard will be unaltered “in the interest of maintaining stability of these assumptions over time”.

The standard will remain in force for statutory money purchase illustrations issued between October 1 2023 and April 5 2024.