TPR long-cohort plan for DB schemes criticised

The NAPF says the move will tend to increase the estimate of liabilities and could be interpreted by trustees as a new minimum requirement. It adds the evidence supporting the use of long cohort projections – which suggest “outstanding” longevity – remains open to debate. In February, TPR set out new guidance for trustees choosing the mortality assumptions for DB scheme valuations stating that, in the case of underfunded schemes, it will treat the non-use of long cohort mortality assumptions as a “trigger” for further scrutiny. Pensions law requires pension scheme trustees to adopt prude...