The Financial Reporting Council (FRC) has confirmed it will develop technical guidance to support scheme actuaries in confirming historic pension scheme amendments, following forthcoming legislation prompted by the Virgin Media Ltd v NTL Pension Trustees case.

The government has recently announced plans to introduce legislation allowing for the retrospective confirmation of scheme amendments, following the Virgin Media judgment, which created uncertainty around the validity of historic changes made to pension schemes without formal actuarial confirmation.

The case, which centred on whether amendments made without a valid actuarial certificate were legally effective, raised concerns across the industry, with many schemes facing questions over the validity of past benefit changes and the potential for unintended benefit liabilities.

Under the new legislation, scheme actuaries will be able to confirm that historic benefit changes met the necessary statutory standards.

Industry experts have suggested that there will be a "collective sigh of relief" after the government confirmed that the legislation, with the news particularly welcomed by those who worked on the campaign encouraging change from the government.

To support this process, the FRC will publish technical guidance once the legislation comes into force.

The regulator stated that it will work closely with the Institute and Faculty of Actuaries (IFoA), the Association of Consulting Actuaries (ACA), and other industry stakeholders to ensure the guidance meets its obligations under the Technical Actuarial Standards and its broader public interest mandate.

The FRC said further details on the timing and scope of the guidance will be made available when the legislation is introduced.

---