Government plans radical MFR changes

The Government is considering making interim changes to the MFR, as suggested in last week's Institute of Actuaries report. The Institute was asked to review MFR by the DSS in March and has produced its review for consultation. The consultation period closes on 31 January 2001 when Paul Myners will report to the pre-Budget Committee. The Institute believes interim changes to the formula of how assets are calculated and matched to liabilities within a pension scheme are necessary to align the strength of the current MFR test with the original intentions. It recommendations include: l Re...