The Financial Reporting Council (FRC) has launched a consultation on proposed revisions to Technical Actuarial Standard (TAS) 300: Pensions, seeking to reflect recent developments in pension scheme funding.

The changes aim to support those carrying out actuarial work under the new Defined Benefit (DB) Funding Code, including provisions relating to advice arising from the improved funding levels of DB schemes.

These revisions were informed by areas of the new DB funding regime where actuarial judgement may be applied or actuarial advice is given, actuarial considerations arising from improved funding levels of DB schemes, and findings from reviews conducted in 2024 and matters identified in response to the consultation on proposed changes to TAS 300 version 1.0.

In line with revisions made in other sections of TAS 300 version 2.0, the FRC has proposed making changes to the structure of Section 2 to bring further clarity to provisions related to communications.

Furthermore, the council proposed the introduction of a separate provision explicitly relating to requirements for further analysis or consideration that are embedded within a communications provision.

Questions posed in the consultation related to views on proposed changes to provisions in relation to the level of prudence in assumptions, and the addition of provisions regarding funding and investment strategy, working with third parties, and open DB schemes.

It also asked respondents to provide views on how provisions within TAS 300 work in relation to buy-ins and capital-backed journey plans, and the use of surpluses.

"Today’s proposed revisions to TAS 300 are designed to ensure that actuarial advice remains responsive and aligned with the evolving landscape for DB pension schemes,” commented FRC executive director of regulatory standards, Mark Babington.

“TAS 300 helps ensure these schemes, which hold significant potential for economic growth, are underpinned with quality actuarial advice.”

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