The Financial Reporting Council (FRC) has published updated Technical Actuarial Standard (TAS) 310 and accompanying guidance to help ensure fairness across member cohorts in collective defined contribution (CDC) pension schemes.

TAS 310 v1.1 aims to support decision makers in considering how fairness can be achieved across different groups of members, following a consultation published in February.

It includes targeted amendments designed to ensure the UK’s actuarial framework remains fit for purpose, after legislation was introduced by the government to enable the operation of multi-employer CDC schemes.

In multi-employer CDC schemes, member and employer contributions are pooled, with investment and longevity risks shares across the scheme.

To manage fairness between different employers and member cohorts, these schemes are required to achieve actuarial equivalence between pension benefits and contributions paid, the FRC noted.

In its consultation on revisions to the TAS, respondents issued broad support for the proposals, including the addition of requirements related to actuarial equivalence, which aim to provide actuaries with an appropriate and up-to-date framework for working with multi-employer CDC schemes.

The FRC also published Technical Actuarial Guidance to support those carrying out work relating to actuarial equivalence in a ‘proportionate manner’.

The standard will be effective for technical actuarial work completed on or after 31 July 2026.

“Actuaries are central to the effective operation of CDC schemes, and the FRC fully supports government’s efforts to bring further innovation to the UK pensions landscape through new forms of CDC pensions,” commented FRC executive director of regulatory standards, Mark Babington.

“By underpinning CDC schemes with clear, proportionate and principles-based actuarial standards, we enable actuaries to deliver rigorous analysis that supports decision-making and strengthens confidence among members and stakeholders.”

---