Retirement Benefit Schemes Transfer Values: Mortality Basis Review

The Demography Committee has prepared a report and recommendations following a review of the mortality assumptions prescribed for use in calculating retirement benefit schemes transfer values. This report has been endorsed by Council and is available on the website here.

Actuarial Standard of Practice PEN-2 “Retirement Benefit Schemes transfer values” (“ASP Pen-2”) sets out the requirements relating to the calculation of individual transfer values payable under the Pensions Act 1990.

With effect from 1st June 2014, the financial and mortality assumptions within ASP Pen-2 version 5.10 have been transposed into statutory guidance issued by the Pensions Authority.  To this end, the Pensions Authority has published “Prescribed Guidance in relation to Section 34 of the Pensions Act, 1990”.  This includes the content of the appendices of ASP Pen-2 version 5.10.  Accordingly, version 6 of ASP Pen-2 is in effect from 1st June 2014. 

Any change to the assumptions to be used in calculating transfer values requires the approval of the Minister for Social Protection.  Thus, this report has now been provided to the Pensions Authority and to the Department of Social Protection. Council has recommended that the Pensions Authority update the mortality assumptions in the Statutory Guidance as per the recommendations set out in the report.