Using prudent assumptions to assess longevity swaps on an accounting basis could mean schemes are paying "over the odds" for certainty, Club Vita says.
Longevity consultant Andrew Gaches said a prudent funding basis is fundamentally the wrong place to start when assessing the cost because schemes risk giving away hard fought-for margins in their reserves....
The top stories this week were the High Court's decision to block the £12bn annuity transfer from Prudential to Rothesay Life, and a separate court ruling that 'raises the bar' for pension rectification exercises.
Guaranteed minimum pension (GMP) equalisation has soared to the top of pension schemes' to-do lists, with 58% stating it is a priority project, research from Equiniti has revealed.
Professional Pensions is holding its defined contribution (DC) conference on 4 September.