Scheme managers welcome delay in longevity changes

An exclusive survey by Professional Pensions showed that 83pc of scheme managers backed the decision, 10pc were against the move and 7pc were unsure.

One manager said: "Introducing the changes from March would have been exceptionally costly – and would have meant schemes had to revise assumptions after they had already started work on funding plans."

But another added that, while this would be good news for scheme sponsors, it would not necessarily be welcome news for schemes trying to increase contribution levels.

Some managers also expressed concern over whether the move, when it is finally introduced, would effectively make the absence of so-called long cohort mortality assumptions a trigger for further regulatory scrutiny.

A manager said: "Doing so would run counter to the principle of scheme specific funding"

This comes after The Pensions Regulator decided to delay introducing changes to the way longevity is treated in the scheme funding regime.

It said changes would not now apply until the beginning of the next defined benefit scheme valuation cycle starting in September 2008.

This follows a consultation in February this year which had suggested introducing changes applying to valuations due from March 2007.

TPR chairman David Norgrove said: "This will impact valuation dates from September 2008, with any necessary recovery plans due up to 15 months later in December 2009."