The Myners' report faced further criticism when its call for a scheme-specific funding standard was described as "poorly defined" by the Actuarial Profession's Pensions Board.
Speaking at the NAPF conference in Birmingham, chairman of the APPB, Peter Tompkins, said that member protection is paid no more than lip service in the UK government's proposals.
He added that “the government solution is to give [a] scheme's actuary a ‘statutory duty of care’, through nobody has defined what this means.
“If the scheme actuary is responsible to members for any deficit in their pension benefits, then this will inevitably mean recommending funding on a strong and expensive basis.”
Tompkin also highlighted that those companies that have the least security with regard to future contributions may well be the ones that wish to fund on the weakest basis.
He concluded: “Abolishing the MFR (Minimum Funding Requirement) will not reverse the gradual switch towards less risky investment behaviour because this is driven more by schemes becoming more mature... .
“In other words, the trend towards bond investment in defined benefit pension schemes is unlikely to be halted by the Myners’ proposals.”
By Janet Du Chenne
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