Pension providers have been advised not to change their systems to comply with new rules for statutory money-purchase illustrations after The Actuarial Profession admitted that they are inconsistent with FSA rules on point-of-sale forecasts.
The rules concern paragraph 11.2.2. in technical memorandum 1.2. drawn up by The Actuarial Profession.
This relates to the change in assumed ages at which members and spouses in statutory money-purchase schemes will take their protected rights’ annuities.
The Actuarial Profession is investigating problems with the rules after some of its members raised concerns that they could be inconsistent with FSA rules on point-of-sale forecasts.
It has consulted with the regulator and has advised members not to revise their systems to comply with 11.2.2, saying that the rules will be updated before the new deadline of April 6, 2007.
The Association of British Insurers says it has complained about the initial deadline given to its members for complying with the rules.
It claims that members were only given eight working days to comply with the November 1, 2006 deadline after receiving notification of the rules at the end of October. It says three months is a more realistic timeframe.
An ABI spokesman says: “There needs to be discussion between all the relevant parties to get this right.”