The FRC has published a consultation on proposed changes to the Actuarial Standard Technical Memorandum 1 (AS TM1). This follows the DWP pensions dashboards consultation, which proposes that AS TM1 assumptions will be used to calculate Estimated Retirement Incomes on pensions dashboards from October 2023.
It is essential in this new environment to ensure consistency between illustrations from different providers and between different types of pension. Proposed changes to AS TM1 include standardising the accumulation rate assumptions and the form of annuitisation at retirement. AS TM1 will continue to apply to Statutory Money Purchase Illustrations (SMPIs).