The IFoA’s Actuarial Review Team has published its first thematic review, which looked at the actuarial advice given by scheme actuaries to UK pension scheme trustees on setting transfer values and commutation rates. This is the first time the IFoA has been able to review independently, in a regulatory context, the standard of work being carried out in practice by actuaries.
The overall standard of advice was very high. However, the Review found that commutation rates are often well below transfer values, which may lead to poor value to members. There is a variety of reasons for these differences, including the role of trustees and sponsors, and the impact on funding.
The published report presents the scope of the review and provided details of the Review Team’s analysis, findings and recommendations.
The IFoA will hold a webinar in early 2021 to provide an opportunity for Members to learn more about the Review findings. Details of the webinar will be published in due course.